AccorHotels is acquiring a 50 percent stake in New York-based SBE Entertainment Group, in a deal worth $319 million.
SBE develops, manages and operates lifestyle hotels — including brands SLS, Delano, Mondrian, Hyde, The Originals and Redbury — as well as residences, restaurants and nightclubs. Founder Sam Nazarianwill continue to own the remaining 50 percent.
Sebastien Bazin, chairman and CEO of AccorHotels, said the investment "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."
"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," he said.
Nazarian said the agreement 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."
SBE will operate 25 hotels, a majority in North America, by the end of 2018. It has another 20 more in its gloabl pipeline.