Hakkasan To Purchase 90 Percent Stake of Morgans Hotel-Owned Light Group
When the Hakkasan opened up the most expensive club ever built in the world in April 2013, CEO Neil Moffitt said they were not satisfied with where they stood. With the $100 million, 80,000 square-foot mega-club — the largest of its kind in North America — Hakkasan has established itself as a major player in the hyper competitive Las Vegas club scene. The club has decided to expand its reach as a hospitality brand and has been aggressively looking to acquire rival clubs within the space. Hakkasan's latest move, according to Forbes, is set to complete a negotiation with Morgans Hotel Group over MHG's stake in the Light Group, the owners of Light Nightclub and 1 Oak. The still to be signed deal would see Hakkasan purchase Morgans Hotel Group's 90 percent stake in the Light Group for a reported fee of approximately $40 million in cash and debt.
This deal would give the Hakkasan Group about 20 properties across the United States in Miami, Los Angeles and Las Vegas, creating an even larger hospitality brand that will have greater control over nightlife in Sin City.
Hakkasan hosts an elite roster of DJ residencies that include Hardwell, Calvin Harris, Tiësto, Above & Beyond, Steve Aoki and Afrojack, shelling out millions of dollars to secure them from other casinos.
Light Nightclub was opened in May 2013 right after Hakkasan as the new competing megaclub. It partnered with Cirque de Soleil to bring in performance artists to the show and had an immersive visual experience for clubgoers. It isn't clear what the new reported acquisition will mean for Light and 1 Oak.
Hakkasan is not with this piece of business. It is slated to open another massive club, a 75,000-foot behemoth to rival Hakkasan in the Caesers Palace, Omnia in spring 2015.