French hotelier, AccorHotels has announced it is expanding its luxury lifestyle holdings by acquiring a 50 percent stake in sbe Entertainment Group.
The deal, valued at $319, leaves sbe CEO Sam Nazarian with a 50 percent stake in the company he founded in 2002. Nazarian will continue to lead the hospitality company from its existing global headquarters in New York.
"This partnership with AccorHotels marks a new milestone in sbe's history," said Nazarian. "This long-term investment by AccorHotels provides sbe, its customers and hotel owners with greater depth and breadth around the world and supports our collective ambition to be the best lifestyle hospitality company in the market. 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. Myself and the over 7,000 associates at sbe are thrilled and honored to partner with AccorHotels and be part of the amazing, innovative and pioneering culture that my dear friend, Chairman and CEO Sébastien 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."
sbe, known for its global portfolio of millennial-focused lifestyle hotels and restaurants, operates such brands as SLS, Delano, Mondrian, Hyde and Redbury Hotels. It is particularly known for its iconic Delano South Beach in Miami, SLS Baha Mar in the Bahamas, Hyde Bellagio in Las Vegas, Mondrian Park Avenue in New York City, Mondrian Doha in Qatar and the newly-opened 57 story SLS LUX Brickell in Miami. Hotels in the pipeline include Delano Rio de Janeiro, Delano Dubai at the Palm and Hyde Midtown in Miami.
sbe also counts such restaurant brands as Katsuya and Umami Burger among its holdings, as well as entertainment brands such as Hyde nightclub and dayclub, Nightingale, S Bar, Skybar and the Doheny Room.
For AccorHotels, which operates luxury hotels and resorts under a number of flags, including Raffles, Fairmont, Banyan Tree, Sofitel, So/ Sofitel and Pullman, the acquisition comes just months after the hospitality company announced its portfolio had grown to 4,300 properties in 100 countries around the world. The acquisition will further expand Accor's presence, especially in major North American cities such as Los Angeles, Miami, Las Vegas and New York.
"I am delighted to announce this strategic partnership with one of the most innovative groups in the luxury lifestyle space worldwide," said Sébastien Bazin, Chairman & CEO, AccorHotels. "The new luxury' is all about exclusive experiences and incredible lifestyle concepts and sbe brands have the perfect know-how that will complete perfectly the AccorHotels portfolio. We remain committed to providing all our guests with unparalleled service and always renewed experiences around the world".
For sbe, the investment provides capital to accelerate the company's international growth plans, especially those in the Middle East and Latin America, its priority markets.
By the end of 2018 sbe will operate 25 hotels, comprising 7,498 keys and 170 restaurants and entertainment venues. It has 20 hotels and residences in its pipeline, in destinations such as Atlanta, Chicago, Washington D.C., Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo and Los Cabos.
sbe hotels will be distributed on the AccorHotels distribution platform, be featured on AccorHotel's website and will be part of the AccorHotels loyalty program. Although the transaction is still subject to regulatory approvals, it is expected to be completed by July 31, 2018.
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