Investment firm Mohari Hospitality has announced plans to acquire Tao Group Hospitality from Madison Garden Entertainment Corp. The transaction values Tao Group Hospitality at $550 million and it is expected to close in May.
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. Also 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.
In a press release, Mohari noted Tao Group’s roster complements its portfolio, which includes 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.
"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," Mark Scheinberg, founder and principal, Mohari, said in a statement. "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."
Tao Group’s portfolio includes over 80 branded locations in 20 markets. Brands include TAO, Hakkasan, OMNIA, Marquee, LAVO, Wet Republic, Ling Ling, Little Sister, Sake No Hana, Beauty & Essex and more. Tao acquired Hakkasan Group in April 2021.
"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," Tepperberg said in a statement. "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."
Mohari was founded in 2017 by Scheinberg and is also led by Managing Partner, J. Allen Smith, the former president and CEO of Four Seasons Hotels and Resorts.
Several acquisitions have taken place thus far in 2023 as companies look to grow their scale in a persistently challenging environment. Earlier this month, for instance, Area 15 Ventures LLC, a private-equity firm based in Castle Rock, Colo., acquired the 50-year-old Port of Subs sandwich brand. Main Squeeze Juice Company acquired I Love Juice Bar in late March. Garnett Station Partners also acquired Firebirds Wood Fired Grill last month. Other deals include 1000 Degrees’ acquisition of My Pie Pizza, Mighty Quinn’s investment in Slows Bar BQ and Xperience Restaurant Group’s acquisition of Rio Mambo Tex Mex y Mas and The Rim.
Contact Alicia Kelso at [email protected]