Accorhotels is continuing its recent acquisition spree with plans to purchase a 50 per cent stake in SBE Entertainment Group.
The US hotel and restaurant group owns brands including Delano, Mondrian, Hudson and SLS, as well as London’s Sanderson and St Martins Lane properties which are marketed under the Originals Collection.
The Letter of Intent calls for Accorhotels to take a 50 per cent stake in SBE, for a total investment of $319 million. The transaction is expected to complete by July 31, subject to regulatory approvals.
SBE properties will be available to book at accorhotels.com, and will participate in the group’s loyalty programme.
Under the agreement SBE will continue to be led by founder and CEO Sam Nazarian, who said that the investment “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”.
The investment will enable SBE to accelerate its international growth into markets outside of the US including the Middle East and Latin America. Pipeline projects include locations in Atlanta, Chicago, Washington DC, Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo and Los Cabos.
Commenting on the news Sébastien Bazin, Chairman & CEO, Accorhotels said:
“I am delighted to announce this strategic partnership with one of the most innovative Groups in the luxury lifestyle space worldwide. 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.
“’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.”