MOHARI HOSPITALITY CLOSES LANDMARK ACQUISITION OF TAO GROUP, RESHAPING LUXURY HOSPITALITY LANDSCAPE

In a move that signals major consolidation in the premium hospitality sector, Mohari Hospitality has finalized its acquisition of Tao Group Hospitality for $550 million, marking a significant milestone for the investment firm’s expansion strategy. The transaction, which closed in May 2023 following MSG Entertainment’s exit from the hospitality brand business, positions Mohari to become a formidable player in global luxury lifestyle management.

Building a Hospitality Giant

The strategic combination of Mohari’s real estate development capabilities with Tao Group’s operational excellence creates what both parties describe as a transformational platform. Under the partnership, co-CEOs Noah Tepperberg and Jason Strauss maintain control of Tao Group’s day-to-day operations, ensuring continuity while tapping into Mohari’s infrastructure and capital resources.

“Over the last 20 years, we have been laser-focused on building premium guest experiences with global influence in hospitality, entertainment and pop culture,” Tepperberg highlighted in recent remarks. This commitment now aligns with Mohari Hospitality’s vision of creating a unified portfolio spanning multiple continents.

A Portfolio That Speaks Volumes

Tao Group brings to the table an impressive collection of over 80 branded locations across 20+ markets. This portfolio encompasses some of the industry’s most recognized names: TAO, the Michelin Star-awarded Hakkasan, OMNIA, Marquee, LAVO, Beauty & Essex, Wet Republic, Yauatcha, and numerous others. The diversity of these brands—spanning fine dining, nightlife, lounges, and daylife venues—provides Mohari with immediate scale and proven operational models.

Complementing this acquisition, Mohari’s existing luxury properties, including the Peninsula Papagayo (anchored by a Four Seasons resort), Centro Canalejas Madrid (featuring Four Seasons Madrid), and The Ritz-Carlton Yacht Collection, demonstrate the firm’s deep commitment to ultra-premium experiences. This foundation now serves as the launchpad for accelerated growth in premier destinations worldwide.

Leadership and Strategic Direction

Mark Scheinberg, Mohari’s founder, alongside Managing Partner J. Allen Smith (former President and CEO of Four Seasons Hotels and Resorts), brings decades of hospitality expertise to steer this combined entity. “Adding Tao Group to our portfolio is a major strategic milestone, and we’re excited about the transformational potential of our partnership,” Scheinberg stated, emphasizing the complementary nature of both organizations’ capabilities.

The acquisition also enables Mohari to leverage Tao Group’s management infrastructure for future projects, such as the recently announced Tao Hotel in Orlando, Florida—a development that exemplifies the combined entity’s ambitions in destination hospitality.

What’s Next

As part of the transaction structure, Tao Group will maintain an ongoing relationship with MSG Entertainment through multi-year consulting, marketing, and support service agreements tied to Madison Square Garden and Sphere in Las Vegas. This arrangement ensures operational stability while allowing both parties to pursue their respective strategic priorities.

The deal, facilitated by major financial and legal advisors including Moelis & Company, Kirkland & Ellis, Goldman Sachs, and Hughes Hubbard & Reed, represents a watershed moment for luxury hospitality consolidation. What emerges is a globally-integrated platform uniquely positioned to shape the future of premium lifestyle experiences.