AccorHotels agreed to buy a 50 percent stake of hotelier Sam Nazarian’s upmarket Sbe Entertainment Group, in a deal that will see Accor making a total investment of USD 319 million in Sbe. In the transaction, Accor will invest USD 125 million in Sbe’s common equity held by Cain International , and USD 194 million in a new debt instrument.
The purchase marks the latest example of Accor’s recent acquisition spree, with the French group agreeing to buy Chile’s Atton Hoteles last month while Accor is also looking at taking a minority stake in troubled airline Air France KLM.
AccorHotels said the SBE acquisition would increase its profile in major U.S. cities such as Los Angeles, Miami, Las Vegas and New York, and give it access to Sbe’s fashionable, millennial clientele. Sbe’s brands include Delano, Mondrian and the Hyde Bellagio in Las Vegas.