ACCORHOTELS will take a 50% stake in the sbe Entertainment Group under a strategic partnership announced on the weekend, giving it an involvement in high-end hotels including the Mondrian and Delano brands.
The partnership involves a total investment by Accor of US$319 million including equity purchased from financiers Cain International.
The founder of sbe, Iranian-born businessman Sam Nazarian, will retain a 50% stake and will continue to act as its ceo.
“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,” Nazarian said.
“Building on our acquisition of Morgans Hotel Group in 2016, this investment will further accelerate our growth both domestically in the US and in new markets internationally, particularly in Europe.”
In addition to its restaurant and nightclub portfolios, sbe will operate 25 hotels by the end of this year including landmark properties such as the Mondrian Los Angeles, Hudson New York, St Martins Lane London and Delano South Beach in Miami.
It also operates the SLS brand with hotels in Beverly Hills, Las Vegas and South Beach.
Source: Travel Australia