New York-based Madison Square Garden Entertainment (MSG Entertainment) reached a deal to divest its majority stake in Tao Group Hospitality to Mohari Hospitality for $300m.

MSG Entertainment owns a 66.9% stake in Tao Group Hospitality which owns a portfolio of restaurants, nightclubs, lounges and daylife venues.

The transaction is expected to conclude next month and values Tao Group at $550m.

Completion of the deal is subject to customary conditions.

Once the deal is completed, MSG Entertainment will sign multi-year agreements with Tao Group for ongoing consulting, marketing and support services at Madison Square Garden and Sphere in Las Vegas.

After MSG Entertainment acquired the majority stake in Tao Group, it is claimed to have transformed into a powerhouse for entertainment, dining and hospitality with a portfolio of more than 80 locations.

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In 2022 the company generated revenues of $485m and an operating income of $37m.

Mohari managing partner J. Allen Smith said: “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.

“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.”

Mohari stated that its luxury hospitality portfolio aligns with Tao’s collection of brands, such as TAO, Hakkasan, OMNIA, Marquee, LAVO, Beauty & Essex and more.

Tao Group co-CEO Noah Tepperberg said: “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.

“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.”