MSG Entertainment announces sale of Tao Group Hospitality to Mohari Hospitality

Featured Image: Colin Lloyd on Unsplash

Madison Square Garden Entertainment Corp (MSG Entertainment) has announced that it is selling its 66.9% majority interest in Tao Group Hospitality to Mohari Hospitality, a global investment company focused on the luxury lifestyle and hospitality sectors. 

The transaction values Tao Group Hospitality, which delivers premium experiences through its restaurants, nightclubs, lounges and other venues, at $550m (£442m/€500m) and is expected to close in May.

Upon the completion of the sale of its majority interest in the company, MSG Entertainment says it is set to receive net cash proceeds of roughly $300m.

MSG Entertainment first acquired Tao Group Hospitality in 2017 and has helped the company grow its portfolio to over 80 branded locations in over 20 markets across four continents. In the 2022 financial year, Tao Group Hospitality generated roughly $485m in revenue, $37m in operating income and $67m in adjusted operating income.

Goldman Sachs & Co served as the financial advisor and Hughes Hubbard & Reed served as legal advisor for Tao Group Hospitality. For Mahari Hospitality, Moelis & Company served as financial advisor while Kirkland & Ellis served as legal advisor.

Completion of the sale is subject to customary closing conditions. On the closing of the sale, MSG Entertainment will enter into a multi-year agreement with Tao Group Hospitality for ongoing consulting, marketing and support services at Madison Square Garden and Sphere in Las Vegas.

Sphere Experiences recently announced its first immersive production, ‘Postcard from Earth’.