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.