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AccorHotels to buy half of SBE in $319M deal

AccorHotels to buy half of SBE in $319M deal

Investment to fund expansion of Umami Burger and Katsuya parent

SBE Entertainment Group, parent company of the Umami Burger chain and operator of several of José Andrés’ restaurants, among many others, has found a new investor to fuel its expansion.

AccorHotels and SBE have signed a letter of intent for Accor to acquire 50 percent of SBE. The hotel group said it would invest $319 million in SBE to buy the common equity and preferred units owned in part by Cain International, giving it a 50 percent stake. SBE founder and CEO Sam Nazarian will continue to own the remaining half of the company.

Accor said it would buy the common equity for $125 million and invest $194 million in a new preferred debt instrument to buy the preferred shares. The deal is expected to be completed July 31.

Cain International invested in SBE in 2016 to help fund its expansion.

Nazarian said the long-term investment by Accor “supports our collective ambition to be the best lifestyle hospitality company in the market,” and would help fuel expansion in the U.S., and abroad, particularly in Europe.

AccorHotels chairman and CEO Sébastien Bazin said the investment would allow the Paris-based hotel group to expand its footprint in the United States, particularly in “key U.S. cities such as Miami, Los Angeles or Las Vegas, and in other international destinations.”

He added: “‘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.”

SBE’s Disruptive Restaurant Group includes José Andrés concepts The Bazaar, with locations in Beverly Hills, Calif.; Las Vegas; Miami and Miami Beach, Fla., as well as Tres in Beverly Hills. It also operates the Umami Burger casual-dining chain, with about 20 units, and Katsuya, Cleo, Leynia, Diez & Sez and Filia restaurants. Additionally, SBE has numerous hotel and luxury residential brands including SLS, Delano, Mondrian, Hyde and the Redbury Hotels. It said it plans to operate 25 hotels by the end of 2018 as well as 170 restaurants and entertainment venues.

Contact Bret Thorn at [email protected] 

Follow him on Twitter: @foodwriterdiary

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