Data Benchmarks & Intellectual Property in Private Members Networks

In assessing the value of a private members network—whether for acquisition, investment, or strategic planning—two pillars are often underemphasized but critical:

1. Concrete operational / financial benchmark data

2. The intangible, but legally and commercially enforceable, intellectual property (IP) and brand assets

Below I lay out what the publicly available data suggests (benchmarks), then explore what constitutes the IP behind membership networks, and why acquirers pay for it.

Key Benchmarks from Private Members Networks

(Soho House + Industry)

Soho House is one of the most transparent, global examples. Its recent financial disclosures provide useful benchmark metrics:

Metric	Soho House Actuals / Trends	Interpretation / Benchmark Context
Membership Growth	YoY membership growth ~20-30% for “Soho House members” segments; total members also growing strongly. Business Insurance+4Soho House+4Soho House+4	Strong growth in membership signals demand and validates the exclusivity model. Growth in members must be managed so as not to degrade brand / service.
Waitlist	Soho House has had waitlists at record highs (e.g. ~95,000, ~99,000) across its network. Soho House+3Boutique Hotelier+3Soho House+3	Waitlists are a sign both of scarcity (exclusivity) and latent demand. They provide pricing power and negotiating leverage.
Revenue (Total & Membership)	Total revenues in FY 2023 ~US$1,135.9 million, up ~16.8% YoY. Membership revenues ~US$361.5 million in that period, up ~32.5% YoY. Membership revenues represent ~31-32% of total revenues. Soho House	A large membership revenue component (≈30-35%) signifies recurring, relatively stable cash flow, less dependent on food & beverage, hotel, etc. Also a lever for margin expansion.
Adjusted EBITDA	FY 2023: US$128.0 million (≈11% margin), up from ~US$60.7 million in FY 2022. Soho House	Strong improvement in profitability metrics is key—acquirers often care most about EBITDA or similar “owner’s earnings” after normalizing for one-offs.
RevPAR and In-House Revenue Growth	In-House revenues grew ~13% for some periods; RevPAR (Revenue per Available Room) like-for-like grew 11% YoY in one of the years; other Qs showed +13% YoY etc. Business Insurance+3Soho House+3Boutique Hotelier+3	High RevPAR growth shows strength in lodging/hospitality parts of the business—acquirers will often segment out what parts are high capex / high risk vs stable recurring revenues.
Retention Rates	Soho House reports “strong membership retention” and “very high retention” with membership waitlists stable, and retention around pre-pandemic levels. Specific retention rate was ~91.5% in 2023 according to press summaries. The Wall Street Journal+2Boutique Hotelier+2	Retention in the 85-95% range is very good. It supports high lifetime value, lowers acquisition cost per revenue dollar, and increases predictability.

Other industry benchmarks (outside Soho House) provide context:

• Private member / social clubs often aim for renewal rates / retention in the ballpark of 80-90% annually. BPlan AI+2Private Club Marketing+2

• Average Member Lifetime Value (LTV) in relevant boutiques or clubs: ranges given in some planning templates are US$3,000 to $10,000 (or higher for luxury / high-spend members). BPlan AI

• Member satisfaction scores: in luxury/private clubs, Net Promoter Scores (NPS) or satisfaction benchmarks often expect >70% or high 8/10 ratings. Business Plan Templates

• For hospitality more broadly, EBITDA multiples tend to run 4-8× for businesses with solid cash flow; boutiques/resorts with strong brand/location can command more. DealStream

What Counts as Intellectual Property for Private Members Networks

Beyond financials and membership metrics, a big part of valuation comes from IP. Private members networks are unique in that a lot of their value lies in intangible assets: brand, culture, relationships, membership criteria, and more. These are less visible, but often decisive. Key kinds of IP in such networks include:

1. Brand Identity & Reputation

   Names, logos, trademarks, the impression of exclusivity or “cool”, the heritage or story. For example, “Soho House” carries association with creative professionals, luxury, design, social proof, etc.

2. Membership Criteria / Selection Process

   The rules, the application process, the “committee” or vetting, the scarcity. These help enforce exclusivity - both real and perceived, which allows pricing premiums.

3. Curated Experience

   The design of physical spaces, level of service, amenities, events programming, hospitality standards. This is less standardized and harder to replicate quickly, but critical.

4. Digital & Community Assets

   Membership platforms, apps, digital content, online community, social media channels, loyalty programs, etc. These help engage members, reduce churn, cross-sell, drive non-physical revenue streams.

5. Data / Member Relationships

   Member data (preferences, behavior, usage), waitlists, loyalty, length of membership, feedback, trends. This lets the network optimize, personalize experience, price, upsell, and avoid mis-investments. This is often undervalued in early assessments.

6. Operations / Systems / Process Knowledge

   Standard operating procedures, experience in opening Houses in different geographies, supply chain partners, staffing models, back-office efficiencies, service training. These are intangible know-how.

7. Contracts, Leases, Permits

   While more “legal/asset” than “creative IP,” the set of leases (for prime properties), contracts with suppliers, exclusivity agreements, etc., can embed value because they may be hard to replicate, may have favorable terms, or may block competitors.

8. Design & Architectural Assets

   Unique design identity, interiors, property architecture, décor, furniture design etc. These may correspond with registered design IP, or simply “trade dress,” giving brand-recognition value.

How IP + Data Benchmarks Translate into Acquisition Value

Putting together the data and IP, acquirers typically value private members networks using a blend of the following levers:

• Revenue multiples (often EV/EBITDA or similar): Based on projected recurring revenues (membership fees, renewals), plus non-membership revenues that can be stabilized. For networks with strong growth and retention, multiples are higher.

• Discounted cash flow (DCF) projections that assume stable membership growth, fee increases, margin improvements, capex requirements. Benchmarks like retention, LTV, member growth rate feed directly into these projections.

• Premiums for brand strength & IP: Strong brand or IP allows pricing power. Acquirer expects that members will accept fee hikes, continue loyalty, attract further demand, even under ownership or category expansion.

• Synergies & scale: If the acquirer can exploit shared services, cost efficiencies, cross-selling (e.g. hospitality, retail, digital content or events), then the IP has more leverage.

• Risk adjustments / discount for scalability: Though IP is valuable, risks include brand dilution, operational risk, location risk, rising costs, cultural missteps. Benchmarks such as waitlists, retention, high satisfaction or NPS help reduce this risk.

Soho House as an Example of Data + IP in Practice

Soho House exhibits many features that make its IP and benchmark metrics especially attractive:

• Membership growth is strong, with a high waitlist, which shows excess demand. Soho House+2Boutique Hotelier+2

• Membership fee revenues are growing faster than many other segments (membership revenues +30% YoY vs total revenue + ~15-20%). This indicates that the recurring part is weighting more heavily in its business model. Soho House

• Retention remains “strong” / “very high” according to reports. While exact numbers are not always precisely disclosed, media summaries report ~91.5% retention in 2023. The Wall Street Journal

• High brand appeal: The Soho House “waiting list” itself is IP of sorts—scarcity which adds to prestige. The experience, design aesthetic, curated events, global network of Houses are part of what people are buying.

• Improvement in profitability: Adjusted EBITDA doubling in a year gives acquirers confidence in path to margin expansion. Soho House

Practical Benchmarks / Targets for Acquirers / Investors

If someone is evaluating a private members network (or considering building one), here are rough data-benchmarks / targets to aim for—based on what successful ones like Soho House have achieved or are expected to achieve:

Metric	Good Target	Exceptional Target
Annual membership growth	15-25% in early-to-mid stages / in new geographies	>25–30% especially if scaling quickly, or launching lots of new Houses
Retention / renewal rate	~80-90% annually	≥ 90% (plus strong metrics on member engagement and satisfaction)
Membership revenue share of total income	≥25-30%	30-50% (if membership is central to model, lower risk, high margin)
EBITDA margin	~10-15% once scale & operational improvements kick in	>15% for very efficient operations, with strong brand leverage and premium pricing
Waitlist / unfulfilled demand	Growing waitlist is positive; ensures pricing power	Large waitlist; demand exceeds supply significantly, enabling selective admissions, premium pricing
Lifetime Value (LTV) per member	Reach a multiple of subscription price times avg membership duration; US$3,000-US$10,000 in many models	LTV well above acquisition cost; possibly US$15,000+ in ultra-premium or high usage models
NPS or Member Satisfaction	NPS > 50; satisfaction ratings ~8 or 8.5/10	NPS >70; near universal praise; very strong word-of-mouth and low negative feedback

Why IP and Benchmarks Matter to Acquirers in Valuation

Finally, in M&A and acquisition negotiations, acquirers will often include value for the IP and benchmark data in the following ways:

• Premium multiple: Because strong retention, brand strength, and proven growth lower risk, the multiple paid over EBITDA might be higher (i.e. a paying more than the baseline 4-8× for hospitality, if the brand and membership components are strong).

• Deferred payments / earn-outs: Some deals might tie payments to future performance metrics (e.g. retention, membership growth, profit margins) because IP is only valuable if maintained.

• Focus on “core vs non-core”: Acquirers may segment “core membership business” and “other revenue streams” like food & beverage, events, real estate, where the latter might be more volatile. The IP often lives in the core membership brand, retention, experience.

• Protecting the IP post-acquisition: Sometimes buyers will require non-compete clauses, or enforce strict service-level agreements, to preserve what made the membership network valuable in the first place.

Conclusion

Data benchmarks (growth rates, retention, membership revenue share, margins) provide the measurable underpinnings of what makes a private members network valuable. Intellectual property—brand, exclusivity, membership curation, design, member relationships—complements the quantitative data to produce a composite value that acquirers are willing to invest in, often paying premiums.

Soho House is a prime example: strong, consistent membership growth; a large and growing waiting list; improving profitability; and an IP that includes reputation, experience, aesthetic, and community. All of these elements feed into what made its acquisition appealing and its valuation substantial.