Madison Square Garden Entertainment Corp. on Monday announced an agreement to sell the multibrand Tao Group Hospitality to Mohari Hospitality, a global luxury real estate investment firm founded by online poker entrepreneur Mark Scheinberg.
Under the deal, MSG Entertainment has agreed to sell its 66.9% majority interest in Tao Group. When the transaction closes, which is expected in May, MSG Entertainment will receive net cash proceeds of about $300 million.
Tao Group, which includes about 80 restaurant and nightclubs in more than 20 markets across four continents, was valued at about $550 million. In fiscal 2022, Tao Group generated about $485 million in revenue. The group’s brands include the high-end Tao Asian Bistro, Hakkasan, Lavo and others, and Tao Group also recently announced plans to open the group’s first branded Tao Hotel in Orlando, Fla.
Scheinberg, in a statement, said adding Tao Group to the Mohari portfolio is a strategic milestone for his company, “and we’re excited about the prospects for the combined business and the transformational potential of our partnership.”
The deal will also bring Tao Group back to the hands of co-founders Noah Tepperberg and Jason Strauss, who joined Mohari in the acquisition. Tepperberg and Strauss had sold a majority stake in the group to MSG Entertainment in 2017, but remained involved.
“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,” said Scheinberg. “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.”
Mohari’s portfolio includes Peninsula Papagayo in Costa Rica, which is anchored by a Four Seasons resort; Centro Canalejas Madrid, which also has a Four Seasons; and The Ritz-Carlton Yacht Collection.
“Tao Group has grown from an innovator in nightlife to a leader in premium lifestyle and hospitality. It’s 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, Mohari’s managing partner and the former president and CEO of Four Seasons Hotels and Resorts, in a statement. “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.”
Scheinberg was the founder of the online gambling company PokerStars, which he later reportedly sold for close to $5 billion.
MSG Entertainment announced its plans to sell the restaurant and nightlife group in February, sparking rumors of various potential suitors, including restaurant collector Tilman Fertitta of Landry’s Inc.
MSG Entertainment officials said the deal announced Monday followed a bidding process with multiple parties.
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