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AccorHotels takes stake in US hospitality group
AccorHotels has acquired a 50% stake in New York-based sbe Entertainment Group.
Established in 2002, sbe is a privately-held lifestyle hospitality company that develops, manages and operates luxury hotels, residences, restaurants and nightclubs.
Its brands include SLS, Delano, Mondrian, Hyde, The Originals (Sanderson, St. Martin Lane, Hudson, 10 Karakoy, Shore Club) and the Redbury Hotels.
AccorHotels will acquire the equity held in part by Cain International for $125 million while founder Sam Nazarian will continue to own the remaining 50%.
In addition, AccorHotels will invest $194 million in a new preferred debt instrument that will be used to redeem all existing preferred units, also held in part by Cain International.
AccorHotels’ total investment in sbe will be $319 million.
By the end of 2018 sbe will operate 25 hotels, mainly in North America, 170 restaurants and entertainment venues worldwide and new properties in the Middle East, Asia and Latin America.
It currently has a further 20 hotels and residences around the world in its pipeline, as well as 59 standalone restaurants and nightlife venues.
Sbe will continue to be led by Nazarian and the existing management team.
"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," said Nazarian.
"Myself and the over 7,000 associates at sbe are thrilled and honoured to partner with AccorHotels and be part of the amazing, innovative and pioneering culture that my dear friend, AccorHotels chairman and CEO Sebastien Bazin and his team have implemented.
"Moving forward, sbe and AccorHotels together are committed to bringing our unique lifestyle experiential offering to more destinations and serving our discerning guests with unforgettable memories."
Bazin said it marks a new step in expanding AccorHotels’ footprint in the fast growing luxury lifestyle segment in key US cities such as Miami, Los Angeles or Las Vegas, and in other international destinations.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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