SBE revealed it has entered an agreement to acquire the Morgans Hotel Group collection of brands—plus 13 domestic and international hotel management contracts—in an $82 million all-cash transaction.
Morgans Hotel Group’s portfolio includes SLS, Hyde and The Redbury hotels, alongside venues that include Morgan Katsuya, Cleo, The Bazaar by José Andrés, Hyde Lounge and Umami Burger.
In addition, SBE expects to add an additional five hotel properties by the end of 2016 with the planned opening of SLS Brickell in Miami, Townhouse Hotel in Miami Beach, SLS Park Avenue in New York City, Hyde Hallandale in Florida and a planned hotel in the pipeline for the Mondrian Doha.
SBE will also take direct ownership of the 194-room Delano Hotel in South Beach, the 878-room Hudson Hotel in New York City and the 372-room Clift Hotel in San Francisco. The entire transaction, including incoming properties and management contracts is said to be worth around $794 million.
As part of the transaction, SBE is receiving a significant investment from Cain Hoy Enterprises, a global real estate investment company headed by Jonathan Goldstein. In addition, The Yucaipa Companies will convert its existing stake in Morgans into an ownership interest in SBE.
SBE Founder, Chairman and CEO Sam Nazarian will retain majority ownership interest in SBE.
"We have long admired Morgans, its impressive history and culture of service and innovation, so we're delighted to reach an agreement on this transaction,” Nazarian said. "Our strategic vision is to operate these amazing and unique lifestyle properties in key international gateway markets.”
After completion of the Morgans acquisition, SBE will feature a portfolio of 20 lifestyle hotel properties with more than 6,000 keys in nine markets and more than 90 entertainment and F&B offerings.
