Hakkasan to buy $36m portfolio of Las Vegas clubs and restaurants
The Hakkasan Group, owned by Abu Dhabi-based Tasameem Real Estate, said on Monday it would buy a portfolio of nightclubs and restaurants in Las Vegas from Morgans Hotel Group for US$36 million.
New York-based Morgans said that it would sell its 90 per cent stake in The Light Group (TLG). The other 10 per cent, held by TLG’s founders Andrew Sasson and Andy Masi, is also included in the deal, which comprises a total of 22 properties.
“The acquisition of The Light Group is another step forward in our ambitious investment strategy to deliver exceptional guest experiences,” said Neil Moffitt, the chief executive of Hakkasan Group.
The deal makes Hakkasan the largest non-gaming dining, entertainment and hospitality company in Las Vegas, he added.
Hakkasan also said that it intended to “assume and maintain the vast majority of TLG’s contracts, licences and events”.
The transaction’s completion is subject to conditions and is expected to close next month.
Hakkasan’s current portfolio includes the flagship Hakkasan Restaurant with 12 locations worldwide, as well as Yauatcha, HKK, Sake no Hana, Herringbone, Searsucker and Social House.
The hospitality company’s other brands include Hakkasan Nightclub, Wet Republic and Omnia Nightclub, due to open in Las Vegas and in San Diego next year.
Most of TLG’s clubs and dining outlets are inside the Aria, Mirage, Bellagio and Mandalay Bay hotel-casinos on the Las Vegas Strip.
All of them are MGM Resorts International properties. New York-listed MGM Resorts International and Hakkasan, formed a hospitality joint venture in April this year – MGM Hakkasan Hospitality – with plans to develop and manage high-end, non-gaming properties globally. The joint venture will develop hotels, resorts and residential properties under the Bellagio, Hakkasan, MGM Grand and Skylofts brands, with the first project set to launch in late 2016 or early 2017.
Apart from the joint venture with MGM, Hakkasan has made some other investments this year. In January it took a controlling stake in Enlightened Hospitality Group, a San Diego-based hospitality development company, and followed it up in February with the purchase of Angel Management Group, a Las Vegas-based nightlife and entertainment company.
In June, it acquired a majority stake in The h.wood Group, an event production company based in Los Angeles that also owns nightlife venues such as Bootsy Bellows, Hooray Henry’s, The Nice Guy, Blind Dragon and SHOREbar.
Meanwhile, the Nasdaq-listed Morgans Hotel Group is bringing its Mondrian hotel brand to Doha, with the 270-room property due to open next year.
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Published: December 17, 2014 04:00 AM