Photo Credit: sbe
Two hospitality powerhouses, sbe Entertainment Group and AccorHotels, are planning to join forces in a 50-50 partnership. AccorHotels will acquire 50-percent of sbe’s common equity—partially held by Cain International—for $125 million, while founder and CEO Sam Nazarian will continue holding the remaining 50-percent of the company. AccorHotels will also 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,” according to the company, which will total a $319 million investment in sbe.
Nazarian will continue to run the hospitality management team with its global headquarters in New York as an independent luxury lifestyle operator. “This partnership with AccorHotels marks a new milestone in she’s history,” he began. “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 [our company] 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.”
Photo Credit: sbe
Chairman and CEO of AccorHotels, Sébastien Bazin, was equally as thrilled about the strategic partnership. “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.“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”.
Photo Credit: sbe
As a result of the merger and AccorHotels’ presence in 100 countries, sbe will expand its international footprint, with growth in markets including those in the Middle East and in Latin America. By the end of the year, it is expected that it will run 25 hotels with 7,498 keys (mostly in North America), as well as 170 world-renowned restaurants and entertainment venues in global destinations. Currently, 20 new hotels and residences worldwide are in the company’s near future, as are 59 restaurants and nightlife venues.
Photo Credit: sbe
AccorHotels will, in turn, expand in the North American market, in cities such as Los Angeles, Miami, Las Vegas and New York, whilst opening itself up to sbe’s pivotal millennial customer base, who will have access to the AccorHotels platform. Properties/brands, which include SLS, Delano, Mondrian, Hyde, The Originals, Redbury Hotels, Katsuya, Umami Burger, Leynia, Skybar, Doheny Room, S Bar and many more, will be included on AccorHotels’ distribution platform, its loyalty program and on its website, Accorhotels.com.
Photo Credit: sbe
The transaction is scheduled for completion at the end of July.
