AccorHotels and sbe Entertainment Group confirmed their merger after signing a letter of intent in June and entering into negotiations regarding AccorHotels' 50% stake in sbe.
AccorHotels and sbe Entertainment Group have announced a strategic partnership: the French group has acquired 50% of sbe. Founded in 2002, sbe is an independent lifestyle hotel operator that develops, manages and operates hotels, residences, restaurants and discos worldwide.
The French group acquired 50% of sbe's ordinary shares, held in particular by Cain International, for an estimated amount of $125 million (€107.5 million ) in the summer. The remaining 50% will still be held by Sam Nazarian. In addition, AccorHotels announced that it would contribute $194 million (€166.5 million) to the issuance of a senior debt security to repay the existing senior debt, also held in part by Cain International.
In total, AccorHotels' investment in the transaction is estimated at $319 million (€273.5 million).
The French group once again demonstrates its desire to expand its offer on the luxury hotel segment.
Eventually, sbe will remain an independent luxury operator with access to AccorHotels' distribution platform.
Sam Nazarian, founder and CEO of sbe said: "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."
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Sébastien Bazin, Chairman and CEO of AccorHotels, also said: "I am delighted to announce this strategic partnership with one of the most innovative Groups in the luxury and 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."
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