After acquiring a 50 percent stake in sbe in 2018, Accor is taking full ownership of sbe’s hotel brands and management platform from original founder Sam Nazarian. As part of Accor’s simplification and asset-light strategy, and with the goal of accelerating its momentum in the lifestyle hospitality sector, Accor announced on November 24 the signing of binding agreements on a new sbe Group’s ownership structure.
Under the terms of these agreements, Accor is taking full ownership of sbe’s Hotel asset-light business, including the Delano, Mondrian, SLS, and Hyde hotel brands along with most of sbe’s food and beverage brands, including Cleo, Fili’a, and Carna by Dario Cecchini.
These brands will be at the heart of Accor’s newly created global Lifestyle platform. Sbe currently operates 22 hotels and has more than 40 properties in the pipeline, which has more than doubled since Accor’s initial investment in sbe in 2018. Upcoming openings include Mondrian London and SLS Dubai in 2021.
Eldridge, a holding company with a network of businesses across finance, technology, real estate, and entertainment, is acquiring sbe’s two remaining assets: the Hudson Hotel in New York and Delano in Miami.
In parallel, Sam Nazarian is taking full ownership of sbe’s Disruptive Restaurant Group Platform (DRG) and its 15 owned restaurant and nightlife venues along with an increased majority ownership of C3, a leading player in digital kitchens and lifestyle food halls business that will count more than 200 digital kitchens by year-end 2020.
“Since opening my first hotel in January 2009, the game-changing SLS hotel at Beverly Hills, I always knew that the lifestyle segment within the hospitality space would become the most exciting part of the mainstream hotel business,” said Sam Nazarian, CEO of Disruptive Restaurant Group and majority shareholder of C3. “Ever since I established my partnership and sincere friendship with my mentor Sébastien Bazin, I also knew that there would be no one better, along with the amazing Accor global family, to take what we have built at sbe hotels into the next stratosphere. I am equally thrilled to have launched and continue to lead Disruptive Restaurant Group as well as C3. Having just debuted 18 months ago, C3 has already become a true pioneer and disruptive force in the digital kitchen and technology space, along with Accor and Simon properties.”
“Looking three years back, when we initially invested alongside Sam Nazarian, I am amazed by the journey we’ve accomplished. Today marks a milestone crystalizing these last years’ successes and international development,” said Sebastien Bazin, chairman and CEO of Accor. “This redesigned ownership structure will accelerate growth and a leaner management structure. Sam is a visionary leader and a relentless and talented entrepreneur. I am thankful he will continue the journey as my special advisor.”
Accor will continue to benefit from the expertise and network of Nazarian, who will remain a special advisor to Bazin.
Nazarian continued, “sbe has operated and opened 22 hotels and close to 200 bars and restaurants in nine countries, with a pipeline of over 40 hotels and resorts to come. I am so proud that we have built the largest and most exciting collection of luxury lifestyle destinations and brands in the world. The excitement continues as I will be alongside Sébastien and his team for the next three years to help bring to life some of our new projects and brands as well as to continue to learn from such a respected visionary in the hospitality space.”