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AccorHotels to Acquire 85% Stake in 21c Museum Hotels

The 21c Museum Hotel in Kansas City, MO, opened two weeks earlier. Image Credit: 21c Museum Hotels

AccorHotels, based in Paris, has actually taken an acquisitive taste to American boutique luxury hotels.

This week, the international travel and way of life group accepted get 85 percent of 21c Museum Hotels, a hospitality management business that combines a contemporary art museum with a hotel. The Louisville, Kentucky-based firm runs eight residential or commercial properties with three more under development throughout the United States.

This arrangement allows 21c Museum Hotels to utilize AccorHotels’ worldwide hospitality platform while maintaining its independent spirit.

The purchase price for the 85 percent stake is $51 million, consisting of a potential make out payment. No realty is included in the acquisition. The transaction ought to be completed throughout the 3rd quarter of 2018.

The deal follows by one month AccorHotels’ letter of intent to obtain a 50 percent stake in Los Angeles-based sbe Entertainment Group for $319 million. The hospitality and domestic brand names of SBE include SLS, Delano, Mondrian, Hyde, The Originals and the Redbury Hotels. By the end of this year, sbe will run 25 hotels, comprising 7,498 spaces with a bulk in North America

The deals highlight AccorHotels’ technique to expand its offering in the high-end lifestyle hospitality sector.

In revealing the 21c Museum offer, Kevin Frid, chief operating officer, North and Central America for AccorHotels, said it reinforces the group’s footprint in The United States and Canada. It presently operates hotels in Kentucky, Bentonville, AK; Cincinnati, Durham, NC; Kansas City, MO; Nashville, TN; and Oklahoma City.

“We have an incredible opportunity to grow the 21c brand name, along with present MGallery into the North American market, constructing both brand name equities,” Frid said in a declaration. “This strategic acquisition marks a brand-new action in AccorHotels’ strategy.”

Contemporary art collectors Laura Lee Brown and Steve Wilson founded 21c Museum Hotels in 2006 in Louisville, KY. The chain takes its name from the pairing of 21st century art with historic buildings repurposed into hotels and restaurants.

The principle lines up with AccorHotels MGallery by Sofitel brand, a collection of boutique hotels tied to the literature and culture of the cities where they lie.

“We are positive that the special spirit of 21c will not just be protected, but will flourish within the MGallery collection of shop hotels,” Wilson said of the deal with AccorHotels.

Co-founders Brown and Wilson will retain a 15 percent stake in the company, and will stay carefully involved in providing innovative guidance and assistance of the unique mix of art, design and hospitality. 21c Museum Hotels will continue to be led by its president and president, Craig Greenberg, with corporate headquarters remaining Louisville.

International law firm Proskauer encouraged AccorHotels in its acquisition of a stake in 21c Museum Hotels.

Proskauer has represented AccorHotels for more than 20 years in a variety of deals amounting to around $10 billion, consisting of the sale of Motel 6 and related U.S. economy hotel operations for $1.9 billion; the $1.32 billion sale of Red Roof Inns; the more than $1.5 billion in sale-and-management-back in the U.S. for Sofitel and Novotel homes; and its contract to purchase sbe Entertainment Group.

AccorHotels to Buy Half of SBE Home Entertainment for $319 Million

Paris-Based Accor to Increase United States Existence with Stake in LA-Based Hospitality Company

AccorHotels will buy a HALF stake in Sam Nazarian’s Los Angeles-based SBE Entertainment Group in the latest example of the French group’s acquisition spree in the high end hotel sector.

Paris-based AccorHotels, increasing its foothold in the United States lodging market, will acquire the 50% of SBE’s typical equity held by Cain International for $125 million, and will invest $194 million in a brand-new debt instrument for an overall financial investment of $319 million.

Nazarian will continue to own the remaining 50% of SBE, that includes such well-known brand names as SLS Hotel & & Residences, Delano, Mondrian and Hyde in New York City, Miami, Las Vegas and worldwide resort locations as the Bahamas, Rio de Janeiro and Dubai.

The fancy Iran-born Nazarian, who founded SBE in 2002 and released a string of trendy clubs, dining establishments and hotels, now uses 7,000 individuals worldwide. SBE’s homes include Delano South Beach in Miami, SLS Baha Mar in the Bahamas, Mondrian Doha in Qatar, Mondrian Park Avenue in New York City and the newly opened 57-story SLS LUX Brickell in Miami.

The long-term investment will enable SBE to take advantage of AccorHotels’ worldwide hospitality platform “while staying an independent high-end lifestyle operator,” the business said in a declaration. SBE, with support from Cain Hoy and Ron Burkle’s The Yucaipa Business, got Morgans Hotel Group in 2016 for a reported $800 million.

SBE stated it would run 25 hotels making up 7,498 spaces by the end of 2018, primarily in The United States and Canada. The business has 20 hotels and houses worldwide in its development pipeline and has actually offered 1,500 branded property units valued at $2 billion, with over 2,500 units valued at $2.5 billion in its pipeline.