France: AccorHotels will buy a 50 per cent stake in Sam Nazarian’s SBE Entertainment Group, in a deal that will see Accor invest $319 million in SBE.
SBE‘s brands include SLS Hotels and the Morgans brands it acquired in May 2016, including well-known brands such as Delano, Mondrian and Hudson.
AccorHotels will buy 50 per cent of SBE’s common equity held by Cain International for $125 million and also invest $194 million in a new debt instrument, making a total investment of $319 million.
Sam Nazarian, founder and CEO of SBE: “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. 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.”
Sébastien Bazin, chairman and CEO of AccorHotels 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.”
The purchase marks the latest example of Accor’s recent acquisition spree, following its purchase of stakes in Mantis Group, Mantra Group, Mama Shelter and 25hours hotels.
According to reports it is also looking at taking a minority stake in Air France KLM.