AccorHotels acquires 50% stake in sbe
Recently, AccorHotels and sbe Entertainment Group (’sbe’) have signed a Letter of Intent and entered into exclusive negotiations according to which AccorHotels will acquire a 50% stake in sbe, further illustrating AccorHotels’s strategy to expand its offering in the luxury lifestyle hospitality segment.
This partnership will combine the expertise and savoir-faire of the two groups; AccorHotels will acquire the 50% of sbe’s common equity held in part by Cain International for USD 125 million. The Founder and CEO Sam Nazarian will continue to own the remaining 50% of sbe. In addition, AccorHotels will invest USD 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. AccorHotels’ total investment in sbe will be USD 319 million.
This long-term investment will allow sbe to leverage AccorHotels’ leading global hospitality platform while remaining an independent luxury lifestyle operator. Sbe will continue to be led by Nazarian as well as its expert management team while retaining its global headquarters in New York.
Speaking on the occasion, Nazar/g-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. This investment will further accelerate our growth both domestically in the United States and in new markets internationally, particularly in Europe. Moving forward, sbe and AccorHotels together are committed to bringing our unique lifestyle experiential offering to more destinations and serving our discerning guests with unforgettable memories.”
Sébastien Bazin, Chairman & CEO, AccorHotels said, “I am delighted to announce this strategic partnership with one of the most innovative Groups in the luxury lifestyle space worldwide. ‘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. We remain committed to providing all our guests with unparalleled service and always renewed experiences around the world.”
Through this investment, sbe will accelerate its international growth with expansion into new markets outside of the U.S., including priority growth markets in the Middle East and Latin America. sbe’s pipeline includes projects in some of the most important global gateway cities such as Atlanta, Chicago, Washington D.C., Dubai, Rio de Janeiro, Mexico City, Cancun, Tokyo and Los Cabos.
May 22, 2019