PARIS — AccorHotels has entered into exclusive negotiations to acquire a 50-per-cent stake in New York-based SBE Entertainment Group for $125 million.
This strategic partnership will also see AccorHotels invest $194 million in a new preferred debt instrument that will be used to redeem all existing preferred units, bringing the company’s total investment in SBE to $319 million.
This 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 and will retains its global headquarters in New York.
“[This partnership] marks a new step in expanding AccorHotels’ footprint in this fast-growing segment in key U.S. cities, such as Miami, Los Angeles or Las Vegas, and in other international destinations,” says Sébastien Bazin, chairman & CEO, AccorHotels. “The new luxury is all about exclusive experiences and incredible lifestyle concepts and SBE brands have the perfect know-how that will complete the AccorHotels portfolio.”
SBE is a leading lifestyle-hospitality company that develops, manages and operates global properties and brands, including Delano, Mondrian and Redbury Hotels. It is known for its 360-degree approach to lifestyle hospitality, which includes branded luxury residences and serviced apartments, wellness and spa platforms and dining and entertainment experiences.