SBE ENTERTAINMENT GROUP acquired by ACCOR HOTELS

Accor acquired the remaining 50% of sbe’s hotel business from founder Sam Nazarian in November 2020, two years after buying the first half, taking full ownership of its brands and management platform. The transaction, structured as a mix of cash and asset swaps, valued the hotel and restaurant business at an enterprise value of $500M–1.5bn. Accor had originally planned to buy the stake in 2022, but brought the purchase forward as the business grew faster than expected, roughly doubling its pipeline over the period. The perimeter covered the Delano, Mondrian, SLS and Hyde hotel brands, their asset-light management platform, and most of the food and beverage brands including Cleo, Fili’a and Carna by Dario Cecchini. At the time, sbe operated 22 hotels with more than 40 properties in its pipeline. The rest of the group was divided between two other parties. Sam Nazarian took full ownership of the Disruptive Restaurant Group and its 15 restaurants and nightlife venues, including Katsuya, S Bar, Doheny Room and Nightingale Plaza, and increased his majority stake in C3, the digital kitchens platform, which was to operate more than 200 of them by the end of 2020. Those businesses were valued at an enterprise value of $200 million. Eldridge acquired the two remaining property assets, the Hudson Hotel in New York and the Delano in Miami. The acquired brands became the core of a new asset-light lifestyle and entertainment platform at Accor, built alongside its combination with Ennismore and bringing together SO/, Hyde, Mama Shelter, 25hours, 21c Museum Hotels, Tribe and Jo&Joe. Nazarian stayed on as special adviser to Accor chairman and chief executive Sébastien Bazin.

In the past, Sbe Entertainment Group was acquired by Accor Hotels in 2018 as part of its expansion strategy.