AccorHotels buys half of NY-based lifestyle hospitality group

AccorHotels has signed a letter of intent to acquire a 50 per cent stake in sbe Entertainment Group in a US$319 million deal, further demonstrating its ambitions in the luxury lifestyle hospitality segment.

AccorHotels will acquire 50 per cent of sbe’s common equity held in part by Cain International for US$125 million, while sbe’s founder and CEO Sam Nazarian will continue to own the remaining 50 per cent.

In addition, AccorHotels will invest US$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.

The investment will allow sbe to leverage AccorHotels’ global hospitality platform while remaining an independent luxury lifestyle operator. Sbe will continue to be led by Nazarian as well as its management team while retaining its global headquarters in New York.

Nazarian said: “This long-term investment by AccorHotels provides sbe, its customers and hotel owners with greater depth and breadth around the world.”

With the acquisition, sbe hotels will be available on the AccorHotels distribution platform, be featured on Accorhotels.com and be part of the AccorHotels loyalty programme.

“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,” Nazarian continued.

Sébastien Bazin, chairman & CEO, AccorHotels, said the deal “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”.

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