Hakkasan expands F&B empire with $36m acquisition
Abu Dhabi-owned operator adds 22 venues in Las Vegas to its portfolio
Hakkasan Group, the hospitality and entertainment company owned by Abu Dhabi-based Tasameem Real Estate, is to 22 nightlife, daylife and restaurant properties to its portfolio by acquiring The Light Group from Morgans Hotel Group.
The US $36 million acquisition is expected to be completed in January and will see Hakkasan dramatically increase its presence in Las Vegas. It will not affect MHG’s global hotel portfolio.
"We are thrilled to be bringing The Light Group and its unrivalled nightlife, daylife and restaurant offerings under Hakkasan Group's umbrella," said Hakkasan Group CEO Neil Moffitt.
"The acquisition of a majority stake in The Light Group is another step forward in our ambitious investment strategy to deliver exceptional guest experiences. The agreement increases our dining and entertainment portfolio with an additional 22 nightlife, daylife and restaurant properties, making Hakkasan Group Las Vegas' largest non-gaming dining, entertainment and hospitality company.
“Hakkasan Group and The Light Group are highly complementary businesses and we intend to assume and maintain the vast majority of The Light Group's contracts, licenses and events."
As part of the transaction, Morgans Hotel Group will assume control of the F&B offerings from TLG at its Delano South Beach hotel. It will also retain its leasehold interests in the three Mandalay Bay restaurants that will continue to be managed by TLG, as well as an option to buy a minority interest in TLG for a period of up to 18 months post-closing.
Hakkasan Group's portfolio already included the flagship Hakkasan Restaurant with 12 locations worldwide, as well as Yauatcha, HKK, Sake no Hana, Herringbone, Searsucker and Social House.
Its nightlife and daylife brands include Hakkasan Nightclub, Wet Republic and Omnia Nightclub, while Herringbone's Los Angeles location is currently located in Morgans Hotel Group's Mondrian hotel in West Hollywood.
"The sale of The Light Group allows us to deliver significant value to stockholders and demonstrates the success of the Special Transaction Committee's ongoing strategic review process,” said Morgans Hotel Group chairman of the board and interim chief executive officer.
“Not only does the transaction strengthen Morgans Hotel Group's financial position, but we will also have an enhanced focus on our core assets. Under Andy Masi's direction, The Light Group has established itself as a strong brand, and we expect the business will thrive as part of Hakkasan Group."