AccorHotels and SBE Entertainment Group have completed AccorHotels’ acquisition of a 50-percent stake in SBE.
Through this partnership, AccorHotels aims to expand its offering in the luxury lifestyle hospitality segment and its footprint in gateway cities across North America. SBE, meanwhile, will be able to leverage AccorHotels’ hospitality platform while remaining an independent lifestyle operator. SBE will continue to be led by its founder and CEO Sam Nazarian and its management team while keeping its global headquarters in New York.
The deal is poised to boost SBE’s 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, United Arab Emirates; Rio de Janeiro; Mexico City; Cancun, Mexico; Tokyo; and Los Cabos, Mexico.
Sébastien Bazin, chairman & CEO of AccorHotels, said in a statement that the partnership “combines the best of both groups by offering all our guests new experiences and lifestyle concepts in the Luxury segment. With SBE’s brand portfolio, AccorHotels is taking a significant step forward in its group’s expansion in the U.S.”
Sam Nazarian, founder and CEO of SBE, noted that his company had “grown rapidly" since the acquisition of Morgans Hotel Group in 2016. “The SBE portfolio will grow to over 50 hotels by 2020, paired with tremendous expansion in the residential, culinary and entertainment segment of the 360 lifestyle experience, including over 50 global venues in the pipeline,” he said. “The partnership with AccorHotels is only going to accelerate this growth both in the U.S. and in international markets.”
SBE hotels, culinary and entertainment venues will be distributed on the AccorHotels platform, be featured on Accorhotels.com and will be part of the AccorHotels loyalty program. With its global hotel development platform and its presence in 100 countries, AccorHotels will play a key role in developing SBE’s lifestyle hotel, restaurant and entertainment brands globally including SLS, Delano, Mondrian, Hyde and The Originals (Sanderson, St. Martin Lane, 10 Karakoy, Shore Club and Redbury).
SBE’s hospitality and residential brands include SLS, Delano, Mondrian, Hyde, The Originals (Sanderson, St. Martin Lane, Hudson, 10 Karakoy, Shore Club and Redbury Hotels). Landmark destinations in its portfolio include, Delano South Beach in Miami, SLS Baha Mar in the Bahamas, Mondrian Doha in Qatar, Hyde Bellagio in Las Vegas, Mondrian Park Avenue in New York City and the newly-opened 57 story SLS LUX Brickell and Hyde midtown both in Miami. Upcoming openings include Delano Dubai at the Palm and Hyde Beach House in Hollywood Florida.
By the end of 2018 SBE will operate 25 hotels with 7,498 guestrooms, most of which are in North America, 170 restaurants and entertainment venues as well as new properties in the Middle East, Asia and Latin America. It currently has a further 20 hotels and residences around the world in its pipeline, as well as 59 standalone restaurants and nightlife venues. In addition, SBE has sold 1,300 branded residential units valued at $2 billion with over 2,500 units valued at $2.5 billion in its pipeline. AccorHotels, meanwhile, has 4,500 properties worldwide with nearly 620,000 guestrooms.
Dakota Development is a division of SBE that is responsible for the design and development of SBE properties around the world, and will continue to design and develop SBE properties.
Todd Soloway of Pryor Cashman LLP represented SBE Entertainment Group in this deal.