NEW YORK—sbe has completed the acquisition of Morgans Hotel Group, a move that further expands its international footprint. The transaction, which has a value of $805 million, more than doubles the number of hotels in sbe’s portfolio that includes more than 100 properties currently operating or in development.
The acquisition brings Morgans’ Delano and Mondrian brands—along with 13 domestic and international hotel management and franchise/licensing agreements—together with sbe’s existing collection of hotel brands, which include SLS hotels, The Redbury hotels and Hyde hotels. sbe’s restaurant brands include The Bazaar by José Andrés, Fi’lia by Michael Schwartz, Katsuya, Cleo, Umami Burger and Hyde Lounge. As part of the Morgans acquisition, sbe takes direct ownership of the 194-room Delano Hotel in South Beach, Miami; the 878-room Hudson Hotel in New York; and the 372-room Clift Hotel in San Francisco.
“The acquisition of Morgans not only further expands our offering, but brings the invaluable partnerships of Ron Burkle and Cain Hoy Enterprises,” said Sam Nazarian, sbe founder and CEO. “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.”
Upon the acquisition, the expanded company will operate under the name of sbe and feature a portfolio of 22 international lifestyle hotels in global markets, in addition to residential properties within North America. sbe currently offers 129 hotel, entertainment, nightlife and restaurant venues globally.