US-based Tao Group Hospitality acquires Hakkasan Group: US-based Tao Group Hospitality has acquired Hakkasan Group, creating a “premium hospitality powerhouse that includes a global portfolio of brands and properties with significant potential for future growth”. The newly combined company operates 61 entertainment dining and nightlife venues in 22 markets across five continents. These include Tao Group Hospitality’s Tao, Marquee, Lavo, Beauty & Essex, Avenue, Cathédrale and Koma brands, as well as Hakkasan Group’s Hakkasan, Yauatcha, Omnia, Ling Ling, Jewel and Casa Calavera brands. Hakkasan Group’s executive team will continue to run day-to-day operations for the Hakkasan properties under the direction of Tao Group Hospitality, led by co-chief executives Noah Tepperberg and Jason Strauss. Tepperberg said: “Hakkasan Group is a strong strategic fit with a venue portfolio that not only expands our US presence, but gives us an important foothold in key global destinations. Over the past 20 years, Hakkasan Group has built some of the most successful brands in the hospitality industry. This partnership provides a tremendous platform to use our combined scale to create new opportunities that drive value.” Strauss added: “Despite the challenges caused by the pandemic, we know there’s a real desire by people around the world to gather once again. As indoor dining and other hospitality experiences start to return to regular operations, we believe our newly combined company will be well positioned to take advantage of this pent-up demand, setting the stage for long-term growth.” Hakkasan Group executive vice-president Derek Silberstein said: “We are thrilled to join Tao Group Hospitality. We look forward to utilising our collective strengths to continue raising the bar for exceptional guest experiences.” Tao Group Hospitality said the deal drives a number of benefits, including the creation of a combined portfolio of world-renowned entertainment, dining and hospitality brands that can be leveraged globally. Through a combination of licence, management and lease agreements, Tao Group Hospitality and Hakkasan Group have built a vast network of partners that provide the combined company with additional opportunities for expansion and brand development. The addition of Hakkasan Group immediately increases Tao Group Hospitality’s footprint and provides local expertise to support further expansion. Hakkasan Group’s portfolio expands Tao Group Hospitality’s domestic reach in key markets such as Las Vegas, southern California and Miami, while also significantly growing Tao Group Hospitality’s international presence with the addition of important global destinations. This includes London, where Hakkasan Group has five venues, highlighted by its Michelin star-rated flagship restaurants, Hakkasan Mayfair and the original Hakkasan Hanway Place. Hakkasan Group also operates four venues throughout the Middle East, providing an instant platform for growth in several fast-developing markets. Tao Group Hospitality is part of Madison Square Garden Entertainment, a leader in live experiences. The newly combined company will continue to work with MSG Entertainment “to create innovative experiences that can be integrated across MSG Entertainment’s portfolio of live offerings”, including its collection of venues featuring New York’s Madison Square Garden. MSG Entertainment has also announced plans to build state-of-the-art venues, called MSG Sphere, in Las Vegas and London – where the newly combined hospitality company will have a significant presence. MSG Entertainment has already made significant progress on the construction of its Las Vegas venue, which it expects to complete in 2023, and continues to pursue its plans in London, pending necessary approvals. For the transaction, Tao Group Hospitality issued equity from one of its subsidiaries to acquire Hakkasan Group from Hakkasan USA. With the completion of the deal, Tao Group Hospitality owns a majority of the newly combined company. MSG Entertainment owns a controlling interest in Tao Group Hospitality and, as a result, also owns a controlling, indirect interest in the newly combined company.