AccorHotels is further diversifying with plans to take a $125 million half share in lifestyle hospitality firm sbe Entertainment Group.
AccorHotels’ total investment in the business will be $319 million including the 50% being acquired from private investment firm Cain International.
The deal, expected to be completed by the end of July, is part of the French hotel group’s strategy to expand its offering in the luxury lifestyle hospitality segment.
Sbe’s leading hospitality and residential brands include SLS, Delano, Mondrian, Hyde, The Originals (Sanderson, St. Martin Lane, Hudson, 10 Karakoy, Shore Club) and the Redbury Hotels.
Through its Disruptive Restaurant Group platform, sbe has created global culinary brands Katsuya, Umami Burger, Cleo, Leynia, Diez & Siez and Filia and entertainment brands including Hyde nightclub and dayclub, Nightingale, Privilege dayclub Black Orchid, S Bar, Skybar and the Doheny Room.
The long-term investment will allow sbe to leverage AccorHotels’ global hospitality platform while remaining an independent luxury lifestyle operator.
Sbe will continue to be led by its founder and CEO Sam Nazarian while retaining its global headquarters in New York.
Nazarian said: “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.
“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.
“Moving forward, sbe and AccorHotels together are committed to bringing our unique lifestyle experiential offering to more destinations and serving our discerning guests with unforgettable memories.”
AccorHotels chairman and CEO Sebastien Bazin added: “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.”
Jonathan Goldstein, chief executive of Cain International, said: “Cain International became partners to sbe in 2016 providing the investment required at that time to enable the group to expand its footprint of some of the leading luxury lifestyle hospitality assets in the world.
“We are confident that sbe will continue to go from strength to strength with its new partners, AccorHotels; we wish them every success in the future and are proud of the role we have played in their exciting growth story.”