AccorHotels looks set to continue its spending spree, having now acquired a 50 percent stake in SBE Entertainment Group.
SBE Entertainment Group develops, manages and operates hotels, residences, restaurants and nightclubs. In late 2016, SBE acquired Morgans Hotel Group, adding 13 boutique hotels to the Group’s portfolio. Following the acquisition, SBE now owns and operates over 20 hotels, 70 restaurants and 42 lounges.
AccorHotels’ investment is valued at USD$319 million.
Sam Nazarian, founder and CEO of SBE, will continue to own the remaining 50 percent stake of the company.
“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, 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.” Nazarian said.
AccorHotels has said that its investment in SBE will accelerate the Group’s international growth, with expansion into new markets outside of the US, including emerging markets in the Middle East and Latin America.
“It marks a new step in expanding AccorHotels’ footprint in this fast-growing segment in key U.S. cities such as Miami, Los Angeles or Las Vegas, and in other international destinations,” Sébastien Bazin, chairman and CEO of AccorHotels said.
“’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.”
Some of SBE’s notable hospitality and residential brands include SLS, Delano, Mondrian, Hyde, The Originals (Sanderson, St. Martin Lane, Hudson, 10 Karakoy, Shore Club) and the Redbury Hotels.