Seaport Entertainment Group: A New Chapter in Entertainment and Hospitality
Tuesday, Jan 7, 2025 4:25 pm ET

Seaport Entertainment Group (SEG) has been making waves in the entertainment and real estate industries, and its recent corporate update is a testament to its commitment to growth and innovation. In this article, we'll delve into the key highlights of SEG's update and explore how these developments position the company for future success.
First and foremost, SEG completed its separation from predecessor parent company Howard Hughes Holdings Inc. (NYSE: HHH) on July 31, 2024, becoming an independent, standalone publicly traded company listed on the NYSE American under the ticker symbol "SEG". This significant milestone allowed SEG to focus on long-term value creation and implement innovative strategies to enhance its operational efficiency and strengthen its cash flow.
In the third quarter of 2024, SEG reported a net loss of ($32.5) million, or ($5.89) per basic and diluted share attributable to common stockholders, compared with a net loss of ($736.2) million, or ($133.31) per basic and diluted share attributable to common stockholders for the third quarter of 2023. This 95.6% reduction in net loss demonstrates the positive financial impact of the separation and SEG's ability to adapt to its new independent status.
Total revenues for the quarter were $39.7 million, a decrease of 1.9% compared to the prior year quarter. While this may seem like a modest decline, it is essential to consider the shift in SEG's revenue streams following the separation from Howard Hughes. As SEG continues to refine its business model and focus on its core competencies, we can expect to see a more stable and sustainable revenue growth in the coming quarters.

One of the most exciting developments in SEG's update is the addition of Grupo Gitano's GITANO NYC to Pier 17. This exclusive, year-round New York dining and nightlife experience spans 13,605 square feet and offers a unique blend of Bohemian-inspired design, nightlife, and modern Mexican cuisine, with stunning views of the Brooklyn Bridge and the New York City skyline. The addition of GITANO NYC is expected to drive high-value foot traffic to Pier 17 and contribute to SEG's overall revenue through above-market revenue per square foot metrics, potentially generating $13-15 million in annual revenue.
Another notable development is SEG's decision to internalize its food and beverage operations by hiring employees from Creative Culinary Management Company (CCMC) and entering into a shared services agreement. This strategic move aims to eliminate third-party management fees, enhance operational control, and implement standardized processes across venues. By capturing higher margins and gaining direct control over operations, SEG can expect immediate benefits in margin expansion, improved cost management, and the ability to implement standardized processes across venues.
SEG also extended its programming agreement with Live Nation for five years, effective January 1, 2025, for The Rooftop at Pier 17. This agreement allows SEG to leverage Live Nation's expertise in live music and event programming, enhancing the overall customer experience at The Rooftop at Pier 17. By offering a one-of-a-kind live music experience with panoramic views of New York City's iconic landmarks, SEG can attract more visitors, increase foot traffic, and boost revenue. Additionally, the agreement positions SEG to launch year-round concert and event programming, further solidifying its market position as a premier entertainment and hospitality company.
In conclusion, Seaport Entertainment Group's corporate update highlights the company's commitment to growth, innovation, and long-term value creation. By successfully navigating its separation from Howard Hughes, internalizing food and beverage operations, and securing strategic partnerships, SEG is well-positioned to capitalize on the growing demand for unique entertainment and hospitality experiences. As the company continues to execute on its strategic initiatives, investors and stakeholders can expect to see a more stable and sustainable financial performance in the coming quarters.