Tue 18th Apr 2023 - Hakkasan owner set to be acquired by Mohari Hospitality in $550m deal Hakkasan owner set to be acquired by Mohari Hospitality in $550m deal: Mohari Hospitality, a global luxury real estate investment firm founded by online poker entrepreneur Mark Scheinberg, has agreed to acquire Tao Group Hospitality, the owner of the Hakkasan brand, in a deal that values the business at $550m (£442.2m). Under the deal, Madison Square Garden Entertainment Corp (MSG Entertainment) has agreed to sell its 66.9% majority interest in Tao Group. When the transaction closes, which is expected in May, MSG Entertainment will receive net cash proceeds of about $300m. Tao Group includes about 80 restaurants and nightclubs in more than 20 markets across four continents. With the purchase of MSG Entertainment’s majority interest, as well as the stakes of additional third-party investors, Mohari will own Tao Group together with management, including co-chief executives Noah Tepperberg and Jason Strauss. In 2022, Tao Group generated circa $485m in revenue. Its brands include Tao Asian Bistro, Hakkasan and Lavo. It currently operates the Yauatcha and Hakkasan restaurants in London. Mohari said the acquisition adds to its already extensive portfolio of assets, but beyond that, also provides the group with a platform and management team that will “accelerate its growth plans and deepen its footprint in leading hospitality destinations”. It said Tao Group will complement its existing portfolio of luxury and lifestyle properties and operating companies, including: the Peninsula Papagayo in Costa Rica, anchored by a Four Seasons luxury resort; Centro Canalejas Madrid, featuring the Four Seasons Madrid; and The Ritz-Carlton Yacht Collection. J Allen Smith, managing partner at Mohari, said: “Tao Group has grown from an innovator in nightlife to a leader in premium lifestyle and hospitality. Its global footprint of more than 80 branded locations in more than 20 markets and best-in-class management infrastructure speaks to the group’s tremendous potential. We look forward to working with Noah Tepperberg, Jason Strauss and the rest of the dynamic management team to continue growing Tao Group’s business.” Tepperberg said: “Over the last 20 years, we have been laser-focused on building premium guest experiences and a company with a global influence in all areas of hospitality, entertainment and pop culture. Mohari’s shared vision, coupled with the strength of its portfolio and leadership, make it an ideal partner as we look at the next chapter for Tao Group. We are excited to build this partnership to scale our companies together.” As a part of the transaction, Tao Group will enter into a multi-year agreement with MSG Entertainment for ongoing consulting, marketing, and support services at Madison Square Garden and Sphere in Las Vegas. Hakkasan features in the Propel Turnover & Profits Blue Book, the latest version of which was released on Friday (14 April). Its turnover for the year ending 31 December 2019 was $283m, of which $56m came from the UK. Of the $73.4m reported for the year ending 31 December 2020, $34.9m came from the UK. Hakkasan’s turnover for the year ending 31 December 2020 is the 127th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.