NEW YORK CITY—sbe founder and CEO Sam Nazarian—with partners Ron Burkle, founder of the Yucaipa Cos. and Cain Hoy Enterprises—have closed on their acquisition of Morgans Hotel Group, a move that further expands the former firm's 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.

“sbe is the only global hospitality company that offers a complete 360-degree lifestyle experience, from hotels and residences to restaurants, entertainment and nightlife,” says Nazarian. “Guests can stay, play, eat and indulge, all within our portfolio of assets.”

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 notable hotel brands, which include such imprints as SLS hotels, The Redbury hotels, and Hyde hotels, as well as sbe's restaurant brands: 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, the 878-room Hudson Hotel here and the 372-room Clift Hotel in San Francisco. Houlihan Lokey served as financial advisor and O'Melveny & Myers served as legal advisors to sbe on the transaction. Both Jonathan Goldstein of Cain Hoy and Ron Burkle will join Nazarian on sbe's Board of Directors.

“sbe will now have a presence from San Francisco to Doha; Los Angeles to London,” says Nazarian. “We couldn't be more pleased about the transaction.”

The firm's growth will accelerate in the near future, with four sbe hotels expected to open in 2017, Mondrian Doha, Qatar; as well as SLS Park Avenue New York, SLS Seattle and Hyde Hotel and Residences, South Florida. An additional nine hotels will be opening within the next two years, bringing sbe's portfolio to 35 hotel properties by year-end, 2018. The growth follows the expansion of sbe's footprint with the recent openings of The Redbury in New York and SLS Brickell in Miami.

Upon the acquisition, the expanded company will operate under the name of sbe and feature a portfolio of 22 world-class international lifestyle hotels in global markets such as Los Angeles, New York, Las Vegas, Miami, San Francisco, Istanbul and London, in addition to residential properties within North America. sbe offers 129 hotel, entertainment, nightlife and restaurant venues globally.

Nazarian will retain all day-to-day management responsibilities and half of the common stock interests in sbe with the remaining half of the common stock and $150 million of newly issued preferred equity shared equally between Cain Hoy and Yucaipa. The acquisition necessitated Yucaipa's support.

“My father Younes and my brother David have been a critical part of the development of sbe and I am thrilled to continue our work together and to collaborate on this next phase of the company with Jonathan Goldstein, Cain Hoy Enterprises and Ron Burkle, with Yucaipa's growing portfolio of world-class hospitality assets in Soho House, Sydell Group and Discovery Land Company. Cain Hoy and Yucaipa's investment significantly improves sbe's financial strength and provides us with the opportunity to invest funds to refresh the iconic Morgans-owned properties, Delano and Hudson,” says Nazarian. “Equally important, it gives us the flexibility to pursue growth opportunities.”

“By adding the Morgans portfolio to sbe's existing stable of brands, I am confident that with Sam and his executive team at the helm, we will leverage this acquisition into strong growth for the company,” says Jonathan Goldstein of Cain Hoy.

NEW YORK CITY—sbe founder and CEO Sam Nazarian—with partners Ron Burkle, founder of the Yucaipa Cos. and Cain Hoy Enterprises—have closed on their acquisition of Morgans Hotel Group, a move that further expands the former firm's 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.

“sbe is the only global hospitality company that offers a complete 360-degree lifestyle experience, from hotels and residences to restaurants, entertainment and nightlife,” says Nazarian. “Guests can stay, play, eat and indulge, all within our portfolio of assets.”

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 notable hotel brands, which include such imprints as SLS hotels, The Redbury hotels, and Hyde hotels, as well as sbe's restaurant brands: 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, the 878-room Hudson Hotel here and the 372-room Clift Hotel in San Francisco. Houlihan Lokey served as financial advisor and O'Melveny & Myers served as legal advisors to sbe on the transaction. Both Jonathan Goldstein of Cain Hoy and Ron Burkle will join Nazarian on sbe's Board of Directors.

“sbe will now have a presence from San Francisco to Doha; Los Angeles to London,” says Nazarian. “We couldn't be more pleased about the transaction.”

The firm's growth will accelerate in the near future, with four sbe hotels expected to open in 2017, Mondrian Doha, Qatar; as well as SLS Park Avenue New York, SLS Seattle and Hyde Hotel and Residences, South Florida. An additional nine hotels will be opening within the next two years, bringing sbe's portfolio to 35 hotel properties by year-end, 2018. The growth follows the expansion of sbe's footprint with the recent openings of The Redbury in New York and SLS Brickell in Miami.

Upon the acquisition, the expanded company will operate under the name of sbe and feature a portfolio of 22 world-class international lifestyle hotels in global markets such as Los Angeles, New York, Las Vegas, Miami, San Francisco, Istanbul and London, in addition to residential properties within North America. sbe offers 129 hotel, entertainment, nightlife and restaurant venues globally.

Nazarian will retain all day-to-day management responsibilities and half of the common stock interests in sbe with the remaining half of the common stock and $150 million of newly issued preferred equity shared equally between Cain Hoy and Yucaipa. The acquisition necessitated Yucaipa's support.

“My father Younes and my brother David have been a critical part of the development of sbe and I am thrilled to continue our work together and to collaborate on this next phase of the company with Jonathan Goldstein, Cain Hoy Enterprises and Ron Burkle, with Yucaipa's growing portfolio of world-class hospitality assets in Soho House, Sydell Group and Discovery Land Company. Cain Hoy and Yucaipa's investment significantly improves sbe's financial strength and provides us with the opportunity to invest funds to refresh the iconic Morgans-owned properties, Delano and Hudson,” says Nazarian. “Equally important, it gives us the flexibility to pursue growth opportunities.”

“By adding the Morgans portfolio to sbe's existing stable of brands, I am confident that with Sam and his executive team at the helm, we will leverage this acquisition into strong growth for the company,” says Jonathan Goldstein of Cain Hoy.