Hakkasan Group suffers severe losses in annual results

Worldwide, upscale hospitality company, Hakkasan Group has posted financial results for the year to 30 June 2018, showing pre-tax losses of £111.6m, compared with £43m in like-for-likes.

The 60 site-strong firm reported a 7% fall in global turnover to £242m, with an 11% decline in the UK attributed to the weak performance of the group’s HKK restaurant, which closed in October 2017.

Adjusted EBITDA was at £1.7m compared with £14.5m for the year before, a fall of 88%, which was attributed to a reduction in turnover and increasing administrative costs.

Owner Alliance International Investment, the Abu Dhabi investment group, is said to be in discussions to sell the business after merger negotiations with US-based hospitality company SBE Entertainment Group fell through earlier this year.

The group's restaurant and nightclub portfolio includes the Michelin Star award-winning Hakkasan, with 11 locations worldwide (two in London), Ling Ling, Yauatcha, HKK, Sake no Hana, Herringbone, Searsucker and Ivory on Sunset. Under the nightlife/daylife umbrella of brands are Hakkasan Nightclub, Wet Republic, OMNIA and JEWEL Nightclub.