MOHARI HOSPITALITY TO ACQUIRE TAO GROUP HOSPITALITY FURTHER ENHANCING ITS LUXURY PORTFOLIO

Rhea-AI Summary

Mohari Hospitality announced its acquisition of Tao Group Hospitality from Madison Square Garden Entertainment Corp. (MSGE) for $550 million. The transaction is projected to close in May 2023, pending customary conditions. This acquisition enhances Mohari's portfolio, adding to its luxury and lifestyle offerings, which include high-profile properties like the Peninsula Papagayo and Centro Canalejas Madrid. Tao Group operates over 80 venues globally, and its management team is expected to continue leading the brand under Mohari. The partnership aims to accelerate growth and expand in the hospitality sector, leveraging synergies and expertise. Furthermore, a multi-year consulting agreement with MSG Entertainment will support Tao Group in its operations at Madison Square Garden and Sphere in Las Vegas.

Positive

• Acquisition values Tao Group at $550 million, expanding Mohari's luxury hospitality portfolio.
• Tao Group possesses a global footprint with over 80 locations, enhancing market presence.
• Management continuity with co-CEOs ensures alignment in strategic direction.
• Partnership expected to foster growth and operational synergies in hospitality sector.

Negative

• None.

With Tao Group joining Mohari's portfolio of investments, the companies look to create a global platform for the development and management of premium hospitality assets

NEW YORK, April 17, 2023 /PRNewswire/ -- Mohari Hospitality, an investment firm focused on the luxury lifestyle and hospitality sectors, announced today that it will acquire Tao Group Hospitality, a global leader and innovator in restaurants, nightlife, and entertainment from Madison Square Garden Entertainment Corp. (NYSE: MSGE) ("MSG Entertainment") and other limited partners. The transaction values Tao Group Hospitality at $550 million and is expected to close in May, subject to customary closing conditions.

This acquisition adds to Mohari's already extensive portfolio of assets, but beyond that, also provides the group with a platform and management team which will accelerate its growth plans and deepen its footprint in leading hospitality destinations.

"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 over 20 markets and best-in-class management infrastructure speaks to the Group's tremendous potential," said J. Allen Smith, Managing Partner, Mohari. "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."

Tao Group will complement Mohari's 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. Mohari is led by an experienced leadership team including investor and founder, Mark Scheinberg, and Managing Partner, J. Allen Smith, the former President and CEO of Four Seasons Hotels and Resorts.

Mohari's luxury hospitality portfolio aligns with Tao Group's expansive global collection of brands, including TAO, the Michelin Star-awarded Hakkasan, OMNIA, Marquee, LAVO, Beauty & Essex and more. Mohari will bring deep real estate development and hospitality management experience to Tao Group, especially for projects like the recently announced Tao Hotel in Orlando, Fla.

"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," said Noah Tepperberg, Co-CEO Tao Group. "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."

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-CEOs Noah Tepperberg and Jason Strauss. This ensures strong alignment as the management team continues to steer the organization, colleagues, and partners.

"Adding Tao Group to our portfolio is a major strategic milestone for Mohari and we're excited about the prospects for the combined business and the transformational potential of our partnership," said Mark Scheinberg, Founder and Principal, Mohari. "Noah and Jason have built a world class and industry leading organization and I'm personally thrilled to have their leadership and entrepreneurial spirit joining the Mohari family. The combination of our assets, brands and teams creates a unique global platform to further realize our vision and expand on our ambition in the hospitality space."

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.

Moelis & Company LLC served as financial advisors, Kirkland & Ellis LLP served as legal advisors and Deloitte served as accounting and tax advisors.

For Tao Group Hospitality, Goldman Sachs & Co. LLC served as financial advisor and Hughes Hubbard & Reed LLP served as legal advisor.

For more information on Mohari Hospitality visit moharihospitality.com, and for more information on Tao Group Hospitality visit taogroup.com.

About Mohari Hospitality

Mohari Hospitality, founded in 2017 by entrepreneurial investor Mark Scheinberg, is a global investment company that engages in a broad range of real estate investment activities, with emphasis on luxury hospitality in prime urban and resort markets. Mohari's investments include both development and operating assets, and Mohari invests both independently and with partners. 

About Tao Group Hospitality

Tao Group Hospitality delivers distinctive culinary and premium entertainment experiences through its portfolio of restaurants, nightclubs, lounges, and daylife venues. Tao Group Hospitality acquired Hakkasan Group in April 2021. The combined company operates over 80 branded locations in over 20 markets across four continents and features a collection of widely recognized hospitality brands. These include TAO, Hakkasan, OMNIA, Marquee, LAVO, Beauty & Essex, Wet Republic, Yauatcha, Ling Ling, Cathédrale, Little Sister, The Highlight Room, Sake No Hana, Jewel, and more.

Media Contacts

Mohari: KWT Global, mohari@kwtglobal.com

Tao Group: Sam Ong, sam.ong@taogroup.com

 

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SOURCE Mohari

FAQ

What is the purpose of Mohari's acquisition of Tao Group Hospitality?

The acquisition aims to enhance Mohari's luxury hospitality portfolio and accelerate growth in the sector.

How much is the acquisition of Tao Group valued at?

The acquisition is valued at $550 million.

When is the acquisition of Tao Group expected to close?

The acquisition is expected to close in May 2023, subject to customary closing conditions.

What are the expected benefits for Mohari after acquiring Tao Group?

The acquisition is expected to provide synergies, expand market presence, and enhance operational capacities in premium hospitality.

What type of venues does Tao Group operate?

Tao Group operates restaurants, nightclubs, lounges, and daylife venues, totaling over 80 locations globally.