PARIS — AccorHotels has announced the completion of a deal that will see the hotel conglomerate acquire a 50-per-cent stake in New York-based SBE Entertainment Group.
Through this partnership, AccorHotels will expand its offering in the luxury-lifestyle hospitality segment and its presence across North America. SBE will also accelerate its international growth with expansion into new markets outside of the U.S., including priority growth markets in the Middle East and Latin America.
“SBE has grown rapidly since the acquisition of Morgans Hotel Group in 2016,” says Sébastien Bazin, chairman and CEO of AccorHotels. “The SBE portfolio will grow to more than 50 hotels by 2020, paired with tremendous expansion in the residential, culinary and entertainment segment of the 360-lifestyle experience, including more than 50 global venues in the pipeline. The partnership with AccorHotels is only going to accelerate this growth both in the U.S. and in international markets.”
According to the release, SBE Entertainment Group founder and CEO Sam Nazarian will continue to lead the group while retaining its global headquarters in New York. SBE hotels, culinary and entertainment venues will be distributed on the AccorHotels platform, be featured on Accorhotels.com and will be part of the AccorHotels loyalty program.
AccorHotels will also play a key role in developing SBE’s iconic luxury-lifestyle hotel, restaurant and entertainment brands globally, including SLS, Delano, Mondrian, Hyde and The Originals (Sanderson, St. Martin Lane, 10 Karakoy, Shore Club and Redbury).
“I am very proud of this unique partnership,” says Nazarian. “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 U.S.”
By the end of 2018, SBE will operate 25 hotels, with the majority in North America, 170 award-winning restaurants and entertainment venues in global destinations, as well as new properties in the Middle East, Asia and Latin America.