Accorhotels has signed an agreement with SBE Entertainment Group (SBE) to acquire a 50 per cent stake in the global hospitality company.
Founded in 2002, SBE represents hospitality and residential brands such as SLS, Delano, Mondrian, Morgans Hotels, Hyde, The Originals (which includes St Martins Lane, Hudson, 10 Karakoy and Shore Club) and Redbury Hotels. It also owns restaurant brands Katsuya, Umami Burger, Cleo, Leynia, Diez & Siez and Filia, as well as a number of nightclubs across the world.
Accorhotels will purchase the 50 per cent stake currently owned by investment firm Cain International for US125 million, while founder and CEO Sam Nazarian will continue to hold his 50 per cent stake. In addition, Accorhotels says it will invest a further $194 million in the company.
The group says the investment allows it to continue its international growth plans outside of the US. SBE also has a pipeline of properties in development in destinations such as Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo, Los Cabos, Atlanta, Chicago and Washington DC.
Sebastien Bazin, chairman and CEO of Accorhotels, said: “I am delighted to announce this strategic partnership with one of the most innovative groups in the luxury lifestyle space worldwide. It marks a new step in expanding Accorhotels’ footprint in this fast-growing segment in key US cities such as Miami, Los Angeles or Las Vegas, and in other international destinations.”
Sam Nazarian, founder and CEO of SBE, added: “This partnership with Accorhotels marks a new milestone in SBE’s history. Building on our acquisition of Morgans Hotel Group in 2016, this investment will further accelerate our growth both domestically in the United States and in new markets internationally, particularly in Europe.”