AccorHotels has completed its acquisition of a 50% stake in US-based hospitality company SBE Entertainment Group in a $319m (£244m) deal.
Founder and chief executive of the group Sam Nazarian will retain control of the remaining 50% of the business and continue to run the company comprising 20 hotels including three properties in London: the Sanderson, St Martin’s Lane and Mondrian London.
The agreement includes the 13 properties within the Morgans Hotel Group snapped up by SBE in May 2016.
Sébastien Bazin, chairman and chief executive, AccorHotels, said: “With SBE’s brand portfolio, AccorHotels is also taking a significant step forward in its group’s expansion in key gateway cities in the US. Sam Nazarian is an innovator with an inborn sense of creating unique experiences and groundbreaking hotels and F&B concepts.”
Nazarian added that the partnership with AccorHotels will help to facilitate the growth of SBE worldwide. “The SBE portfolio will grow to over 50 hotels by 2020, paired with tremendous expansion in the residential, culinary and entertainment segment of the 360 lifestyle experience, including over 50 global venues in the pipeline.”
By the end of 2018, SBE will operate 25 hotels, 170 restaurants and entertainment venues and have further openings planned for Atlanta, Chicago, Washington DC, Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo and Los Cabos.
The SBE deal marks AccorHotels’ latest addition to its portfolio of more than 4,500 hotels worldwide having acquired a plethora of businesses over the past three years including FRHI Holdings, the parent company of Fairmont, Raffles and Swissôtel, and online platforms such as ResDiary and Gekko.