PARIS, June 29 (Reuters) - AccorHotels, Europe’s biggest hotels group, has agreed to buy a 50 percent stake in hotelier Sam Nazarian’s upmarket SBE Entertainment Group, in a deal that will see Accor making a total investment of $319 million in SBE.
French company AccorHotels said the 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 the likes of Delano, Mondrian and the Hyde Bellagio in Las Vegas.
AccorHotels will buy 50 percent of SBE’s common equity held by Cain International for $125 million and also invest $194 million in a new debt instrument, making a total investment of $319 million in SBE Entertainment. (Reporting by Sudip Kar-Gupta; Editing by Sunil Nair)