Soho House is making a bold move by venturing deeper into the desert, but some skeptics are questioning whether this is merely an illusion of success.

The global private members’ club has unveiled plans for the “Soho Desert House Palm Springs,” a seven-acre wellness haven nestled in California’s Coachella Valley. This new retreat boasts breathtaking views of the San Jacinto Mountains and includes club spaces, 17 guest rooms, and an expansive 185-foot pool. True to its brand, it will also feature the renowned “Soho Health Club” wellness amenities.

In theory, this venture embodies the quintessential Soho House experience: exclusive, stylish, and perfectly suited for social media influencers. Yet, beneath the glossy surface, the brand is confronting a less glamorous truth. Its allure is waning, service and food quality have been criticized, internal restructurings are underway, and many are questioning whether the club still holds its once-iconic status.

Scheduled for a grand opening in 2027, the site is a modern adaptation of a 1920s estate originally designed as an artists’ colony. As Soho House prepares to offer cutting-edge treatments like hyperbaric oxygen therapy and cold plunges to the Coachella crowd, the company itself seems to be struggling for breath.

This Palm Springs endeavor signals a renewed desert focus after Soho House unexpectedly abandoned previous plans for a members-only club in 2023. It’s part of a larger expansion strategy that includes new locations in Tokyo, New York, and Los Cabos.

Industry experts suggest this initiative appears more about retaining existing members than attracting new ones. “Teasing” these upcoming locations might be a tactic to prevent membership cancellations on the West Coast, using the “promise” of exciting future projects as a way to sustain revenue, as noted by Soho House Insider.

Once the ultimate status symbol for creatives and celebrities, Soho House now finds itself facing a very modern problem: too many members, not enough mystique.

With almost 50 houses around the world, the brand has ballooned with reportedly more than 200,000 members across its locations—but insiders say growth has diluted the exclusivity that attracted them to begin with.

Complaints about overcrowding, long wait, and slipping service have become increasingly common, with some likening the experience to a “WeWork with better cocktails.”

The struggles aren’t just cultural—they’re financial.

Despite membership revenue, Soho House has reportedly struggled to turn consistent profits since going public in 2021. That turbulence culminated earlier this year in a $2.7 billion deal to take the company private again.

As part of that overhaul, the company has already begun tightening its membership base—reportedly cutting hundreds of members in cities like New York, Miami and Los Angeles.

At the same time, Soho House is facing stiff competition from never, more exclusive clubs like San Vicente Bungalows (SVB) in LA and Casa Cipriani in New York–both of why have managed to maintain a tighter grip on their guest list.

“It’s not nearly as exclusive as it once was, the prestige isn’t there,” one Soho member wrote on Reddit.

“SVB is definitely better now (i have never been bc im a pleb but from what i hear),” another user chimed in.

Membership has become easier to obtain, prices have climbed into the thousands per year, and the once-elusive vibe now feels mass market.  

The Palm Springs location seems designed to rebrand Soho House as a destination experience—less overcrowded, more curated. But whether a desert outpost can restore its fading allure remains to be seen.