AccorHotels has agreed to acquire a 50% stake in US-based hospitality company SBE Entertainment Group in a $319m (£243m) deal.
The new partnership will see the French global hotel company buy real estate company Cain International's share in the business - acquired two years ago - for $125m, while the founder of SBE Sam Nazarian will retain his 50% holding in the business. AccorHotels will also invest $194m (£148m) in a new debt instrument.
The agreement will see a portfolio of 20 hotels, which will include the 13 properties within the Morgans Hotel Group snapped up by SBE in May 2016, joining AccorHotel's global hospitality platform. While the majority of the hotels are in the US, SBE's portfolio includes three properties in London: the Sanderson, St Martin's Lane and Mondrian London.
Also included in the deal is a collection of US eateries within the Disruptive Restaurant Group.
SBE will continue to be led by Nazarian, the chief executive who founded the company in 2002, and retain its headquarters in New York.
Nazarian said the partnership with AccorHotels marked "a new milestone" in SBE's history.
"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. 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."
Sébastien Bazin, chairman and chief executive, AccorHotels: "I am delighted to announce this strategic partnership with one of the most innovative groups in the luxury lifestyle space worldwide. It 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."
The SBE deal marks AccorHotels' latest addition to its portfolio of more than 4,300 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.