AccorHotels has acquired a 50% stake in hospitality company sbe Entertainment Group.
The partnership is part of AccorHotels strategy to expand its offering in the luxury lifestyle hospitality segment across North America.
It allows sbe to remain as an independent luxury lifestyle operator as it bids to reach 50 hotels by 2020. Its founder and chief executive, Sam Nazarian, will stay on in his role at the group’s New York head office.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: “I am very proud of this unique partnership. It combines the best of both groups by offering all our guests lifestyle concepts in the luxury segment. With sbe’s brand portfolio, AccorHotels is also taking a significant step forward in its group’s expansion in key gateway cities in the US.”
Sam Nazarian added: “This partnership with AccorHotels marks the beginning of a new chapter in sbe’s history and I’m thrilled that this strategic partnership has now been completed. sbe has 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. The partnership with AccorHotels is only going to accelerate this growth both in the US and in international markets.”
Sbe hotels and culinary and entertainment venues will be distributed on the AccorHotels platform, featured on Accorhotels.com and be part of the AccorHotels loyalty program. Its hospitality and residential brands include SLS, Delano, Mondrian, Hyde, The Originals (Sanderson, St. Martin Lane, Hudson, 10 Karakoy, Shore Club and Redbury Hotels).
AccorHotels, which has a presence in 100 countries, hopes to help accelerate sbe’s international growth through the deal, including a planned expansion into new markets outside the US such as the Middle East and Latin America. Its pipeline includes 20 new hotels and 59 restaurants and nightlife venues with projects in Atlanta, Chicago, Washington D.C., Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo and Los Cabos.
By the end of 2018, sbe expects to operate 25 hotels, with a collective 7,498 rooms, mainly in North America. It will also have 170 restaurants and entertainment venues in global destinations.