AccorHotels and sbe Entertainment Group have
signed a Letter of Intent and entered into exclusive negotiations
for AccorHotels to acquire a 50% stake in sbe.
AccorHotels will acquire the 50% of sbe's
common equity held in part by Cain International for $125 million.
Sam Nazarian will continue to own the remaining 50% of sbe.
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
AccorHotels’ total investment in sbe will be $319
continue to be led by its Founder and CEO Sam Nazarian as well as
its management team while retaining its global headquarters
in New York.
Sam Nazarian, Founder and CEO of sbe, said, “This
partnership with AccorHotels marks a new milestone in sbe’s
history. 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
Founded in 2002 by Sam Nazarian, sbe’s hospitality and residential brands
include SLS, Delano, Mondrian, Hyde, The Originals (Sanderson, St.
Martin Lane, Hudson, 10 Karakoy, Shore Club) and the Redbury
Through its Disruptive Restaurant Group platform, sbe has
created culinary brands such as Katsuya, Umami
Burger, Cleo, Leynia, Diez & Siez and Filia and innovative
entertainment brands including Hyde nightclub and dayclub,
Nightingale, Privilege dayclub Black Orchid, S Bar, Skybar and the
Landmark hotels in its portfolio include,
Delano South Beach in Miami, SLS Baha Mar in the Bahamas, Mondrian
Doha in Qatar, Hyde Bellagio in Las Vegas, Mondrian Park Avenue in
New York City (pictured) and the newly-opened 57 story SLS LUX Brickell in
Miami. Upcoming openings include Delano Rio de Janeiro, Delano
Dubai at the Palm and Hyde Midtown in Miami.
Through this investment, sbe will accelerate its
international growth with expansion into new markets outside of
the US, including priority growth markets in the Middle East and
Latin America. sbe’s pipeline includes projects in some of the
most important global gateway cities such as Atlanta, Chicago,
Washington D.C., Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo
and Los Cabos.
By the end of 2018 sbe will operate 25 hotels,
comprising 7,498 keys with a majority in North America, 170 restaurants and entertainment venues in global
destinations as well as 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. In addition, sbe has
sold 1,500 branded residential units valued at $2 billion with
over 2,500 units valued at $2.5 billion in its pipeline.
Through this partnership, AccorHotels will
expand its current geographic footprint in gateway North American
cities such Los Angeles, Miami, Las Vegas and New York with iconic
hotels. Additionally, sbe’s core millennial customer base will
gain access to the AccorHotels platform.
The transaction is subject to regulatory approvals. It
should be completed by 31 July 2018.