Pacha Group has effectively been split into two separate entities with the much rumoured sale of the hotel and nightlife assets to Five Holdings, a Dubai based company owned by businessman Kabir Mulchandani.
The reported price of 320 million euros does not include the ‘Lio’ brand which will be retained and managed by existing owners Trilantic Capital Partners who purchased the Pacha Group from the Urgell family in 2017 for around 350 million euros.
Lio is viewed by many as the most dynamic brand within the group with a rapid expansion programme that has seen the cabaret with food focussed business open in Mykonos and London following on from their success in the old El Divino nightclub in Marina Ibiza.
Lio Mallorca opens in August and there’s also plans to open in Miami, Las Vegas and Dubai. The Dubai venue will be at the Five Luxe Hotel, owned and operated by Five Holdings.
The deal is being presented as a new strategic partnership to help international expansion however for all intents and purposes the group is being split into 2, a cherry each for want of a better expression.
As part of the deal Pacha Group will refund the 18 million euros loan they negotiated from the Spanish government as emergency measures to get them through the Covid pandemic which hit the nightlife industry very hard.
MAN IN SAN AN by Martin Makepeace 