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by YumYum
- February 7, 2023
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Sake No Hana is a Tao Team Hospitality concept that opened in New York in December./Photo courtesy of Michael Kleinberg.
Tao Group Hospitality is now formally for sale.
Parent organization Madison Square Back garden Entertainment Corp. reported Monday it is checking out a prospective sale of its majority stake in the New York-based mostly Tao Team Hospitality, a worldwide restaurant and nightlife business that includes additional than 70 places to eat.
Rumors about the attainable sale have been circulating for weeks, and some reports indicated that restaurant collector Tilman Fertitta, president and CEO of Landry’s Inc., was a possible suitor for the Tao Group, which features principles like the Tao Asian Bistro, Hakkasan and Lavo Italian brand names.
In a statement, the business mentioned, “MSG Amusement routinely evaluates ways to maximize shareholder worth and thinks that now is the suitable time to explore a probable sale of its interest in Tao Group Hospitality.”
Tao Group’s co-CEOs Noah Tepperberg and Jason Strauss bought a bulk stake in the team to MSG Amusement in 2017. Tao Team expanded in 2021 with the acquisition of the Hakkasan Group, which integrated the high-conclusion namesake model, as properly as the escalating Yauatcha and Ling Ling brands.
A Ling Ling area, for case in point, is scheduled to open this week at the ultra-luxury Atlantis resort in Dubai.
Final yr, MSG Amusement submitted a proposal to spin off Tao Team as a different firm along with the MSG Sphere, a $2.2 billion location underneath construction in Las Vegas, which is scheduled to open up afterwards this yr. The firm later on dropped that proposal, but a report in The New York Publish indicated Madison Square Garden’s billionaire proprietor Jim Dolan was looking to promote Tao Group to fund the Sphere’s development.
In its Sept. 30-ended earnings report, MSG Enjoyment said Tao Group created $132.7 million in revenues for the initially quarter, up 11% above the prior 12 months. Thanks to greater labor, lease and food items-and-beverage charges, income for the quarter was $5.9 million, down 41% 12 months over yr. Fourth quarter earnings are scheduled for Feb. 9.
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