AccorHotels to acquire 50% stake in US lifestyle hospitality company sbe
Hotel industry news : AccorHotels, a French multinational hospitality company has proposed to acquire a stake of 50% in US lifestyle hospitality company sbe Entertainment Group for $125 million from Cain International, in a move to expand its offering in the luxury lifestyle hospitality sector.
Sam Nazarian, the founder of sbe will retain his stake of 50% in the lifestyle hospitality company that develops, manages and operates hotels, restaurants, nightclubs, wellness and spa platforms, and luxury residences and serviced apartments.
AccorHotels said that it will make a further investment of $194 million in sbe in the form of a new preferred debt instrument that will be utilized to gain all existing preferred units, also owned in part by Cain International.
Sébastien Bazin – Chairman & CEO, AccorHotels, commenting on AccorHotels investment in sbe, said: “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”.
It was in 2016 that Cain International became a stakeholder in sbe by offering the investment needed at that time to facilitate the expansion of sbe’s luxury lifestyle hospitality assets across the world.
AccorHotels’ total investment of $319 million will enable sbe to leverage its global hospitality platform, while continuing as an independent luxury lifestyle operator.
sbe will be continued to be headed by CEO Sam Nazarian and also its existing management team with its global headquarters of New York to be retained.
Commenting on AccorHotels investment in sbe, 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 Europe.”
The investment will enable sbe to speed up its global growth with expansion into new markets outside of the US, including priority growth markets in Latin America and the Middle East.
sbe’s pipeline has projects in some of the most major international gateway cities like Atlanta, Chicago, Washington D.C., Dubai, Rio de Janeiro, Mexico City, Los Cabos, Cancun and Tokyo.
According to the latest hotel industry news, AccorHotels investment in sbe is anticipated to be closed by the end of July 2018 based on receipt of regulatory approvals.