Mohari Hospitality to acquire Tao Group for $550M

Dive Brief:

Investment firm Mohari Hospitality will buy Tao Group Hospitality in a $550 million deal expected to close in May, the companies said in a release.
The acquisition will allow Mohari to expand its existing portfolio of luxury and lifestyle properties as well as its presence in leading destinations.
The companies aim to create a global platform of premium hospitality assets by bringing together Mohari’s real estate development and hospitality management experience and Tao’s nightlife and entertainment expertise.

Dive Insight:

With Tao, Mohari plans to accelerate growth while elevating the luxury hospitality experience.

“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 of Tao, in a release. “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.”

Tao’s collection of restaurants, nightclubs, lounges and venues — many of which operate inside existing hotels around the world — includes Tao, Hakkasan, Omnia, Marquee, Lavo, Beauty & Essex, Wet Republic, Yauatcha, Ling Ling, Cathédrale, Little Sister, The Highlight Room, Sake No Hana and Jewel. In 2022, the hospitality group generated approximately $485 million in revenue, $37 million in operating income and $67 million in adjusted operating income.

Late last year, Tao announced it will open its first Tao-branded hotel in Orlando, Florida, in 2025, created in partnership with Unicorp National Developments.

“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 at Mohari, in a release.

Mohari’s existing portfolio of properties and operating companies includes the Peninsula Papagayo in Costa Rica; Centro Canalejas Madrid, featuring the Four Seasons Madrid; and The Ritz-Carlton Yacht Collection.

Madison Square Garden Entertainment Corporation agreed to sell its 66.9% majority interest in Tao to the investment firm. As a part of the transaction, Tao will enter into a multiyear agreement with MSG Entertainment for ongoing consulting, marketing and support services at Madison Square Garden and Sphere in Las Vegas.