Things were starting to look grim for Hakkasan as the Las Vegas superclub had been tied to the 1MDB scandal, but a newly formed alliance may afford it a viable exit strategy. The Hakkasan Group has announced that it will partner with KAJA Group and Alila Hotels & Resorts to open locations in the Indonesian cities of Bali and Jakarta.
The Hakkasan Group will open the world's first OMNIA Dayclub and Sake no Hana at The Cliff at Alila Villas Uluwatu in Bali, and a Hakkasan restaurant, OMNIA Nightclub and second Sake no Hana location at Alila SCBD Hotel in Jakarta. KAJA Group alone has invested $38 million into the developments, which are expected to bring 489 permanent jobs to both cities in total according to a press release.
The timing of the announcement is strange considering that international investigations are under way which could lead the U.S. Department of Justice to seize hundreds of millions of dollars in Hakkasan Group assets. As such, the passive onlooker can't help but wonder if more is involved in the new partnership than meets the eye.
The Hakkasan Group asserts that the move is intended to be a foothold into East Asian markets like Thailand, Singapore and Malaysia. What remains to be seen is whether or not the investigations into Hakkasan's startup capital will hamper such growth in the months to follow.