ACCORHOTELS BUYING 50% OF SBE ENTERTAINMENT GROUP FOR $319 MILLION
French hotel group AccorHotels has announced that it is acquiring 50% of US-based SBE Entertainment Group, owner of Morgans Hotel Group, for $319 million. Accor will be acquiring the common stock and preferred equity held by Ron Burkle’s Yucaipa Companies (also owner of the Sydell Group and Soho House) and real estate investment firm Cain International.
The acquisition comes after AccorHotels’ $5.3 billion spinoff of its real estate holdings earlier this year, and a number of acquisitions in recent years including those of FRHI Hotels & Resorts, 25hours Hotels and Mama Shelter among others. The SBE acquisition will grow the French group’s lifestyle presence in North America, adding properties in key cities such as New York, Los Angeles and Miami. SBE will continue to be run by founder and CEO Sam Nazarian, who owns the remaining 50% of the company.