Accor Takes 50% Stake in SBE Entertainment Group

By Anna Breuer on 9 October 2018
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Guest room at St Martins Lane

Guest room at St Martins Lane

French hotelier AccorHotels is expanding its presence in the United States with the acquisition of a 50% stake in SBE Entertainment Group, which owns Morgans Hotel Group.

SBE acquired the common stock held by Yucalpa Companies for $125 million and that of Cain International, a real-estate investment firm, and invested $194 million to acquire preferred equity stock owned by the two firms.

The move gives AccorHotels, which has a large footprint in Europe and Asia, a significant presence in New York, Las Vegas, Los Angeles, and Miami.

Under the terms of the agreement, SBE’s headquarters will remain in New York and it will operate as an independent unit under SBE founder Sam Nazarian and existing leadership.  Nazarian will own the remaining 50% of the company.

“Everyone at SBE is hugely excited to combine the unique offerings of both groups to provide our guests with unparalleled lifestyle experience,” said Nazarian in a statement.

The deal includes three hotels in London, St Martins Lane, the Mondrian, and the Sanderson London, as well as SLS, Delano, Hyde, and Redbury brands and dining brands Katsuya, Umamai Burger, and Cleo.

(Photo: Accura Media Group)

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