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Rumor: Hakkasan To Sell Bank, 1OAK, Light And More

By Chuckmonster on Wednesday, 29th July 2015 9:31am
  » filed under Las Vegas  comments: 9


Rumors are swirling that Hakkasan is looking to divest itself from portions of their acquisition of The Light Group from Morgans Hotel Group. The original deal, which was announced in December 2014, outlined that Morgans would sell 90% of TLG assets to Hakkasan Group for $36 million smackers, a black 1976 Les Paul Custom three pickup, a future draft choice and a mustard-stained copy of Tim's book. The deal was expected to close pretty quickly - January 2015 (except for the book, which apparently arrived today.)

Hakkasan may be looking to unload The Bank and Lily Bar at Bellagio, Mandalay Bay's Light and 1OAK at Mirage.

sbe entertainment seems like the obvious choice to take over operations at The Bank and Lily Bar at Bellagio given Hyde and the recent closure of Life at SLS.

The leading theory as to why Hakkasan is looking to jettison the flotsam is possibility that they may have overextended themselves financially. It is certainly possible that TLG acquisition cost - in cash and freshly on boarded operating expenses - paired with the opening of Omnia could cause a small liquidity crisis, but I tend to doubt this. $36m for TLG is peanuts.

Meanwhile, up the street at The Megacenterâ„¢, we're also hearing unconfirmed chatter that Tao will be jumping from The Venetian to Resorts World Las Vegas when it opens in 2021... 2022... 2023.

Tagged: nightlife   hakkasan   light group   morgans hotel      


Comments & Discussion:

SBE would definitely have the cash to do this deal after selling off Katsuya and Cleo to the One Group.

Who gets the bull from Gilley's?

It may be an operations/reputation thing, too. Most, if not all, of Hakkasan's clubs are considered first-tier; Hakkasan and Omnia are two of the nicest places in town, and Wet Republic is one of the bigger dayclubs. The Bank and 1OAK are definitely lower down on the food chain, and Light isn't competing as well as they'd like to. Jettisoning some of the Light Group spaces would let them focus on their core, top-tier properties without having to worry about getting bloated.

It's not about bloat, hakkasan groups big investor pulled out, he was being investigated for money laundering & terrorism. That big penny they paid for TLG properties hurt them bad, they are closing down their Hakkasan restaurants one by one. They are competing against themselves, have you been out lately? Hakkasan & Omnia both are pretty empty. The employee's (cocktail girls) are only making 250.00 a night, as to where The Bank girls make 1,000-1,500 a night. Word on the street is that Hakk hasn't paid rent at MGM in a while. They also haven't made any payments to Morgan's lately either. They are vomiting TLG properties, all of their employee's are quitting, it will be interesting to see the future.

Lilly is at Bellagio not The Mirage isn't it?

donnymac - yup. my bad. i've updated the post. thanks!

Chuck, regarding your end comment, do you have any indication that Resorts World is going to be significantly delayed from the projected opening of late 2018?

@hail2skins - i have no indication about anything.

The Les Paul has white binding right? I would also insist on a proper Marshall amp to go with said Les Paul.

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