Hotel titan Accor has finally acquired the last 50% of hospitality giant SBE Entertainment Group. SBE also sold two assets to the Paris-based company.
2018 50% Acquisition Began the Beautiful Partnership
In 2018, SBE Entertainment’s Sam Nazarian sold 50% of the company to European hotel giant Accor. The son of a wealthy and successful Iranian businessman, Nazarian had no formal hospitality training when he founded SBE. However, his business acumen served him well as SBE has been a successful, dynamic, and ever-evolving company that’s weathered the storm of a changing travel and hospitality industry.
In 2018, the bright future of partnership began between SBE and Accor as Nazarian sold the latter 50% of his company, which includes luxury brands like SLS, Delano, Mondrian, and Hyde.
In 2019, the powerful Accor/SBE team collaborated to launch a luxury brand of hotels they called, “House of Originals.”
BusinessTraveller shares, “Properties [were to] include Sanderson and St Martins Lane in London, 10 Karakoy in Istanbul, and the Shore Club in Miami Beach, previously part of SBE’s Morgans Hotel Group.
SBE said House of Originals hotels would create a ‘community’ for guests centered around luxury experiences in ‘inspiring’ properties, as well as culinary and mixology offerings.
Five hotels are in the pipeline, with more under discussion in cities including Dubai, London and Paris.”
Now the Purchase is Complete
Amid the uncertain landscape that is 2020’s travel and hospitality industries, Nazarian has opted to sell the remaining 50% of SBE. Accor and SBE announced Tuesday that Accor would be taking full ownership of SBE’s brand and properties, including hotel and restaurants. Accor also took ownership of two assets acquired by SBE in a prior purchase; one being the successful Hudson Hotel in Midtown, and the Delano South Beach.
Business Travel News reports that the cash-and-asset transfer is worth approximately $650 million and includes SBE’s digital kitchen platform.
New Ownership Structure Will Accelerate Growth
Nazarian will remain with SBE in an advisory position for three years, according to the purchase arrangement. Accor’s chairman and CEO, Sebastien Bazin, said of the business restructuring per BTN, “This redesigned ownership structure will accelerate growth and a leaner management structure.”
The Commercial Observer reports that Nazarian will now focus on his restaurant interests, taking full ownership of SBE’s Disruptive Restaurant Group. DRG owns 15 restaurants. With the vast majority of the travel and hospitality industries suffering in 2020, Nazarian is in a unique position with money in his pocket to strengthen the foundation of his food and hospitality assets and focus on recovery in 2021.