Boutique Design Events and Trade Fairs

AccorHotels plans to complete its acquisition of a stake in sbe Entertainment Group by the end of this month.

Under the terms of the deal, AccorHotels will acquire the 50% of sbe’s common equity held in part by Cain Intl. for $125 million. sbe founder and ceo Sam Nazarian will continue to own the remaining 50% of the company and lead the group. According to official statements by the companies, this long-term investment will allow sbe—whose hospitality and residential brands include SLS, Delano, Mondrian, Hyde, The Originals and Redbury Hotels—to leverage AccorHotels’ global hospitality platform while remaining an independent luxury lifestyle operator.

“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,” Nazarian says. “Building on our acquisition of Morgans Hotel Group in 2016, this investment will further accelerate our growth both domestically in the U.S. and in new markets internationally, particularly in Europe.”

Additionally, AccorHotels will 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 Intl. Overall, the French hospitality giant’s investment in sbe will be $319 million.

Sébastien Bazin, chairman and ceo of AccorHotels, says the partnership marks a next step in the company expanding its footprint in growing segments in key U.S. cities and other global destinations. Through this investment, sbe will also accelerate its international growth with expansion into new markets outside of the U.S., including priority growth markets in the Middle East and Latin America. sbe’s pipeline includes projects in some of the most important global gateway cities such as Atlanta, Chicago, Washington D.C., Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo and Los Cabos. The company has a further 20 hotels and residences around the world in its pipeline. By the end of 2018, sbe will operate 25 hotels and 7,498 rooms, with a majority in North America.

“‘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,” Bazin says.


Digital Edition

Enhance your Boutique Design magazine experience by exploring our interactive digital edition.

Read the Issue  View the Archives
Subscribe to the Digital Edition