07 Dec 2016
Sbe completes Morgans Hotel Group acquisition
BY Luke Cloherty
Lifestyle hospitality firm sbe has completed the acquisition of Morgans Hotel Group.
Sbe founder and CEO Sam Nazarian announced the takeover – which more than doubles the number of hotels in its portfolio – with partners Ron Burkle and Cain Hoy Enterprises, saying sbe is now “the only global hospitality company that offers a complete 360° lifestyle experience.”
The deal was first announced earlier this year ahead of regulatory approval, and has now completed for a consideration of US$805m (€749.5m; £638.6m).
Nazarian said: "The acquisition of Morgans not only further expands our offering – but brings the invaluable partnerships of Ron Burkle and Cain Hoy Enterprises. Sbe will now have a presence from San Francisco to Doha; Los Angeles to London – and brings its impressive history, talented team and culture of service and innovation to the sbe family. We couldn't be more pleased about the transaction."
Morgans brands include Delano and Mondrian, and its properties are in London, Los Angeles, New York, Miami, San Francisco, Las Vegas and Istanbul – including the iconic Hudson New York, Mondrian Los Angeles and Delano South Beach.
A pioneer in the boutique hotel business, the company was founded in 1984 by Ian Schrager and is based in New York.
Sbe, meanwhile, develops, manages and operates restaurants, nightclubs and hotels, including the SLS, Hyde and Redbury hotels. It has recently opened a branch of the Redbury in New York and SLS Brickell in Miami.
Four new sbe hotels are expected to open in 2017: Mondrian Doha, Qatar; SLS Park Avenue New York; SLS Seattle; and Hyde Hotel and Residences, South Florida.
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