Two titans of hospitality and nightlife are now one. New York City-based Tao Group Hospitality has acquired Las Vegas-based Hakkasan Group in an equity transaction. The companies, which both got their start from eponymous high-grossing Asian restaurants, are leaders in live experiences around the world and most prominently in Las Vegas where both have a major stake in the city’s nightlife industry, which accounts for a reported half-billion dollars or more in revenue annually.
Tao and Hakkasan’s collective venues on the Strip have become a Mecca for high-stakes talent booking with DJs like Calvin Harris cashing paychecks for hundreds of millions of dollars.
The newly combined company operates 61 entertainment dining and nightlife venues in 22 markets across five continents and features brands such as Tao, Marquee, Lavo, Beauty & Essex, Avenue, Cathédrale and Koma, as well as Hakkasan, Yauatcha, Omnia, Ling Ling, Jewel and Casa Calavera, among many others.
In 2017, The Madison Square Garden Company acquired 62.5% common equity interest in Tao Group, which is led by founders Marc Packer, Rich Wolf, Noah Tepperberg and Jason Strauss. That deal was worth $181 million. That partnership brought MSG a world-class dining and hospitality arm.
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-CEOs Noah Tepperberg and Jason Strauss.
In a statement, Strauss said, “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.”
“We are thrilled to join Tao Group Hospitality, a company we’ve long admired for their leadership and innovation in entertainment, dining and hospitality. We look forward to utilizing our collective strengths to continue raising the bar for exceptional guest experiences,” said Derek Silberstein, executive vice president of Hakkasan Group, in a statement.
The newly combined company will work with MSG Entertainment to integrate experiences into an extensive portfolio of live offerings, including New York’s Madison Square Garden. MSG Entertainment is making significant progress on the construction of its Las Vegas venue, MSG Sphere, which it expects to complete in 2023.
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.
