TRAVEL TECHNOLOGY
businesswire | April 21, 2023
Madison Square Garden Entertainment Corp. (NYSE: MSGE) (“MSG Entertainment” or “Company”) today announced that it has agreed to sell its 66.9% majority interest in Tao Group Hospitality to Mohari Hospitality, a global investment company focused on the luxury lifestyle and hospitality sectors, in a transaction that values Tao Group Hospitality at $550 million. The transaction is expected to close in May.
Upon completion of the sale of its majority interest, MSG Entertainment expects to receive net cash proceeds of approximately $300 million.
Today’s announcement follows a successful bidding process with multiple parties. Since MSG Entertainment acquired a majority interest in 2017, Tao Group Hospitality has transformed into a global powerhouse in entertainment dining and hospitality, with a portfolio of over 80 branded locations in over 20 markets across four continents. In fiscal 2022, Tao Group Hospitality generated approximately $485 million in revenue, $37 million in operating income, and $67 million in adjusted operating income.(
Completion of the sale is subject to customary closing conditions. The closing of the transaction is not conditioned on the receipt of financing. Effective as of the closing of the sale, the Company will enter into multi-year agreements with Tao Group Hospitality for ongoing consulting, marketing, and support services at Madison Square Garden and Sphere in Las Vegas.
For Tao Group Hospitality, equity holders of which include MSG Entertainment, Goldman Sachs & Co. LLC served as financial advisor and Hughes Hubbard & Reed LLP served as legal advisor.
For Mohari Hospitality, Moelis & Company LLC served as financial advisor and Kirkland & Ellis LLP served as legal advisor.
See below for the definition of adjusted operating income included in the discussion of non-GAAP financial measures and a reconciliation of operating income to adjusted operating income.
About Tao Group Hospitality
Tao Group Hospitality delivers distinctive culinary and premium entertainment experiences through its portfolio of restaurants, nightclubs, lounges, and daylife venues. Tao Group Hospitality acquired Hakkasan Group in April 2021. The combined company operates more than 70 branded locations in over 20 markets across five continents and features a collection of widely recognized hospitality brands. These include TAO, Hakkasan, OMNIA, Marquee, LAVO, Beauty & Essex, Wet Republic, Yauatcha, Ling Ling, Cathédrale, Little Sister, The Highlight Room, Sake No Hana, Jewel, and more. Tao Group Hospitality is part of Madison Square Garden Entertainment Corp. (MSG Entertainment) (NYSE: MSGE), a leader in live experiences.
Read More
TRAVEL TECHNOLOGY
businesswire | May 03, 2023
SPB Hospitality, an industry-leading operator and franchisor of casual, upscale, and brewery restaurants, today announced the completion of its merger with Krystal Restaurants, adding one of the nation’s most iconic restaurants to its growing portfolio of independently operated hospitality brands.
Founded in 1932 in a single Chattanooga, Tennessee location, Krystal today operates nearly 300 restaurants across 10 states, powered by a team of over 3,500 employees. For 90 years, Krystal has maintained its unwavering focus on delivering a one-of-a-kind taste experience through unique menu items offered at a great price. To support its team in maintaining a consistent brand experience across its growing portfolio of locations, Krystal created its Atlanta-based Restaurant Support Center, which provides real-time support and service for Krystal team members nationwide.
“We are thrilled to welcome Krystal to the SPB Hospitality family,” said Josh Kern, SPB Hospitality Interim Chief Executive Officer. “Krystal’s innovative approach to their menu, marketing, and overall strategy is inspiring, and over its 90-year history, Krystal has demonstrated its commitment to SPB’s overriding vision of providing a truly exceptional guest experience.”
Each brand in the SPB portfolio will continue to operate independently, allowing brands to enhance their unique identity to build affinity with consumers. The team will collaborate to share strategic thinking and best practices across brands, taking advantage of shared services and systems to enable restaurants to run more smoothly. With the addition of Krystal, SPB Hospitality supports a work force of 18,500 individuals.
“We continue to have enormous confidence in SPB Hospitality and the work the team is doing to build the most successful restaurant group in the industry,” said Morgan McClure, President of SPB Hospitality and Managing Director at Fortress Investment Group LLC. Funds managed by affiliates of Fortress own SPB, which was created in 2020 to manage its growing portfolio of hospitality brands. “Krystal’s time-honored brand, and dynamic team, are significant additions to the SPB portfolio and a major step forward in achieving SPB’s vision.”
About SPB Hospitality
SPB Hospitality is a leading operator and franchisor of full-service dining restaurants, spanning a national footprint of hundreds of restaurants and breweries in 35 states and the District of Columbia. The Company’s diverse portfolio of restaurant brands includes Logan’s Roadhouse, Old Chicago Pizza & Taproom, and a collection of high-end restaurant brands including J. Alexander’s, Merus Grill, Redlands Grill and Stoney River Steakhouse and Grill. SPB Hospitality is also one of the largest operators of craft brewery restaurants in the country, including Rock Bott
Read More
BUSINESS TRAVEL
Life House | March 20, 2023
Tech-enabled hotel management company, Life House, has announced the addition of two more properties in Mexico to its growing portfolio of 80+ independent hotels.
The two properties are Faisano Nomadas in Aldea Zama and The Carmen in Playa Del Carmen. With these hotels, Life House is now managing five independent hotels in the Mexican state of Quintana Roo.
The Carmen is a 37-room hotel in the heart of Playa Del Carmen that is catered to adult vacations and is located directly on the beach. Built in 2017, the hotel features stunning views of the Caribbean from its rooftop bar and lounge, Deck5, and also hosts an Italian restaurant, La Famiglia, on the ground floor. The Owner is a long-time Denver-based developer. Ownership was very excited to have Life House take the reins given their existing presence in the Playa Market.
“We selected Life House for the promise of its advanced tech stack and the opportunity for shared services with their other hotels,” said the Owner of The Carmen. “We expect to see many improvements to The Carmen’s operations and profitability with this new partnership.”
Faisano Nomadas is a 24-room hotel in the heart of Aldea Zama. It was designed not just as a hotel, but as a destination itself, complete with a resort-style pool and a bar offering food and drinks concepted uniquely for the hotel. Francisco Mendoza and Gustavo Acosta, the developers of Faisano Nomadas, are highly experienced hotel owners and strategic growth partners for Life House in Mexico.
Francisco Mendoza shared, “Working with Life House has been really exciting. They have been supporting our project with all their experience and knowledge as we are not Hotel operators - we are just investors trying to develop a profitable business with a great customer experience for our guests. Life House has experienced specialists in all operating areas who are guiding us in this journey and giving us the structure needed in order to achieve our goals.”
Life House, founded in 2017, is uniquely positioned to manage smaller, leisure-oriented hotels and resorts across Mexico. Life House provides institutional-quality hotel management and branding services focused on profitability, ease, and long-term real estate value. They offer best-in-class hotel operations that are powered by their robust operational systems and proprietary technology that consistently drives 2x higher NOI, 40% higher net revenues, and all with a very lean on-site staffing model. Life House is therefore seeing high demand for its management platform throughout Mexico and is targeting the region as a strategic area of growth.
“We are excited to partner with Messrs. Mendoza & Acosta and the owner of The Carmen on their special hotels and forward thinking approach,” said Rami Zeidan, the Founder & CEO of Life House. “Ever since we entered the market in 2020, we have seen how many great independent hotels are underserved and we’re looking forward to helping small & medium indie hotels throughout the country in the near future.”
About Life House
Life House is a vertically integrated hotel management & technology company focused on serving small and medium independent hotels with institutional quality service. Life House uses advanced software & operating systems to increase profitability and reliability for independent hotels throughout North America. Life House was founded in 2017 by real estate, hospitality, and technology veterans and is backed by world renowned private equity and venture investors. The company is ambitiously investing in its operational systems to make hotels fare more profitable, predictable, and seamless for owners. Today the company operates over 80 hotels across North America.
Read More