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Monday, 02 July, 2018, 15 : 30 PM [IST]

AccorHotels to acquire 50% stake in sbe Entertainment Group to strengthen luxury segment

French Hospitality Company AccorHotels have just signed a Letter of Intent (LoI) with sbe Entertainment Group ("sbe") to acquire a 50% stake in the latter, further illustrating AccorHotels strategy to strengthen its luxury lifestyle segment.

The acquisition of 50% of sbe's common equity will held in part by Cain International for USD 125 million. Sbe will continue to be led by its Founder and CEO Sam Nazarian, while retaining its global headquarters in New York. Moreover the hotel company will invest USD 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. AccorHotels’ total investment in sbe will be USD 319 million.

Speaking on the partnership, 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. Myself and the over 7,000 associates at sbe are thrilled and honored to partner with AccorHotels and be part of the amazing, innovative and pioneering culture that my dear friend, Chairman and CEO Sébastien Bazin and his team have implemented.”

 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. We remain committed to providing all our guests with unparalleled service and always renewed experiences around the world.”
 
Founded in 2002 by Sam Nazarian, sbe is a leading lifestyle hospitality company that develops, manages and operates global properties and brands. It is popularly known for its approach to lifestyle hospitality that includes branded luxury residences and serviced apartments, wellness and spa platforms, and dining & entertainment experiences.
 
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