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May 9, 2016

SBE signs agreement to acquire Morgans Hotel

SBE has signed a definitive agreement to purchase Morgans Hotel Group in an all-cash transaction, in a move that will bolster SBE's position in lifestyle hospitality management, entertainment, food & beverage, and development.

SBE has signed a definitive agreement to purchase Morgans Hotel Group in an all-cash transaction, in a move that will bolster SBE’s position in lifestyle hospitality management, entertainment, food & beverage, and development.

Following the acquisition, SBE will add Morgans’ collection of brands and 13 domestic and international hotel management agreements to its own portfolio, which include SLS, Hyde, and The Redbury hotels, as well as such venues as Katsuya, Cleo, The Bazaar by José Andrés, Hyde Lounge and Umami Burger.

Besides SBE expects to add more 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, for 25 hotels by the end of this year.

SBE will also acquire direct ownership of the 194-room Delano Hotel in South Beach, the 878-room Hudson Hotel in New York Cityand the 372-room Clift Hotel in San Francisco.

As part of this deal, SBE is receiving a significant investment from Cain Hoy Enterprises, a global real estate investment company headed by Jonathan Goldstein.

Besides, 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 as well as all day-to-day management responsibilities.

Nazarian said: "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.

"Our strategic vision is to operate these amazing and unique lifestyle properties in key international gateway markets, and Morgans’ hotels, along with their talented team, fit perfectly within that vision."

With the closure of the Morgans acquisition, SBE will have a portfolio of 20 lifestyle hotel properties with more than 6,000 keys in nine attractive markets and more than 90 world-renowned entertainment and food & beverage offerings.

SBE, founded by Nazarian in 2002, is a player in hospitality and real estate industries.

Morgans Hotel Group was founded in 1984 and is operates Delanoin South Beach; Mondrian in Los Angeles, New York, South Beach and London; Hudson in New York; Morgans and Royalton in New York; Clift in San Francisco; Shore Club in South Beach, and Sanderson and St. Martins Lane in London, and has licensed a Delano in Las Vegas and a franchised hotel, 10 Karaköy, in Istanbul, Turkey.

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