AccorHotels will be acquiring a 50% stake in lifestyle hospitality company, sbe Entertainment Group, held in part by Cain International for $125 million.
The remaining 50% will continue to be owned by founder and CEO Sam Nazarian. In addition, Accor 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 International, bringing its total investment in sbe to $319 million.
Commenting on the acquisition, AccorHotels chairman & CEO Sebastien Bazin said, “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.”
sbe’s portfolio includes hospitality and residential brands such as SLS, Mondrian, Hyde, The Originals and the Redbury Hotels. It also owns a Disruptive Restaurant Group platform with culinary brands like Katsuya, Umami Burger and Leynia, as well as entertainment brands including Hyde nightclub and dayclub, Nightingale, and Privilege dayclub Black Orchid.
“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,” said Sam Nazarian, founder and CEO of sbe.