by: Farrell Sweeney
by: Farrell Sweeney
May 4, 2021
Tao Group Hospitality has acquired former competitor Hakkasan Group in an acquisition that creates a global premium hospitality powerhouse for Tao Group Hospitality moving forward. The newly merged companies boast 61 entertainment, dining, and nightlife venues in 22 markets across five continents. The acquisition will see brands such as Tao, Omnia, Jewel, Marquee, Lavo and Beauty & Essex unite under one roof. Hakkasan Group’s executive team will continue to run day-to-day operations for Hakkasan properties under the direction of Tao Group Hospitality, led by co-CEOs Noah Tepperberg and Jason Strauss.
Strauss spoke about the deal in an official release, sharing,
“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.”
The vision for the merger is to create a combined portfolio of world-renowned entertainment, dining and hospitality brands that can be leveraged globally. Through a combination of license, management and lease agreements, the two companies have built a vast network of partners that provide the combined company with additional opportunities for expansion and brand development. Markets of focus with the recently inked transaction include London and Hakkasan Group’s four venues in the Middle East, which will provide an instant platform for growth. Tao Group Hospitality is part of Madison Square Garden Entertainment Corporation (MSG Entertainment, NYSE: MSGE). 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 the newly combined company.
Featured Image: Connor McDonnell