LOS ANGELES, July 9, 2015 /PRNewswire/ -- SBEEG Holdings, LLC, parent of global hospitality and entertainment company sbe, announced today an agreement to sell its Katsuya and Cleo restaurant brands to The ONE Group. The sale also establishes a strategic partnership to open Katsuya, Cleo and The ONE Group restaurants at sbe's new SLS, Redbury and Hyde hotels throughout the world.
SBEEG will receive $75 million and warrants to acquire 200,000 shares of The One Group.
"This is a win-win transaction for both companies,'' said sbe Chairman and CEO Sam Nazarian. "With its considerable scale and expertise, The ONE Group is ideally positioned to expand the Katsuya and Cleo brands and incorporate them and other The One Group brands at many of our planned SLS, Redbury and Hyde hotel properties. This marks the beginning of an exciting, synergistic relationship that will encourage the continued expansion of our respective hotel and food and beverage brands, both domestically and internationally.''
The companies expect to have the opportunity to open at least 10 additional The ONE Group restaurants at new SLS, Redbury and Hyde hotels during the next five years.
"sbe is committed to increasing our brand value and securing long-term management deals for our hotel and other restaurant and nightlife brands,'' Nazarian said. "The relationship with The One Group will give sbe access to an even wider collection of high-energy, unique restaurant concepts that can be integrated into our hotels to create an exceptional guest experience. This enables us to remain asset-light, while deploying resources to incubate innovative ideas. Our goal is to continue to create and monetize those innovations.''
Nazarian said the sale aligns sbe's strategy to focus on management and operations of its hotel, restaurant and entertainment properties. He lauded Jonathan Segal, founder and CEO of The ONE Group.
"I've watched as Jonathan has advanced his vision to become one of the world's top food and beverage operators,'' Nazarian said. "He is a personal friend, and it's been a pleasure to work with him on this deal. We look forward to an exciting partnership with the ONE Group.''
As part of its "asset-light'' strategy, sbe recently announced the sale of SLS Hotel South Beach and SLS Hotel Beverly Hills. sbe will continue to run SLS Hotel South Beach in a long-term management deal; it will also continue to oversee the SLS brand at the Beverly Hills property.
Earlier this month, Nazarian announced the spinoff of sbe's real estate development arm into a new entity called Dakota Development. The team at Dakota has developed a range of design-forward, internationally acclaimed properties, including SLS developments in Las Vegas, Beverly Hills and South Beach; Redbury Hotels in Hollywood and South Beach, Katsuya by S+tarck and Cleo restaurants, and Hyde nightlife venues. Dakota is offering its expertise globally to developers, lenders and investors.
sbe is a global hospitality and real estate company that develops, manages and operates award-winning hotels, casinos, residences, restaurants and nightlife around the world. Through exclusive partnerships with cultural visionaries, sbe is dedicated to delivering the best in design, culinary and entertainment. Already a proven leader in the hospitality and real estate industries, sbe has over 80 properties currently operating or in development, and has expanded several of its flagship brands including SLS Hotels, The Bazaar by José Andrés and Hyde Lounge nationally and internationally. Founded in 2002 by Chairman and CEO Sam Nazarian, sbe is a privately held company. More information about sbe can be obtained at www.sbe.com
There are 13 other sbe hotel properties under development, including:
- SLS LUX at Baha Mar in Nassau, The Bahamas
- SLS Hotel & Residences Brickell is slated to open in Miami in 2016
- SLS LUX Hotel & Residences Brickell is slated to open in 2017
- SLS Seattle is slated to open in 2017
- SLS LUX Hotel & Residences Philadelphia is slated to open in 2017
- Hyde Hotel & Residences Hollywood, FL is slated to open in 2017
- Hyde Hotel & Residences Midtown Miami is slated to open in 2017
- SLS LUX Hotel & Residences Washington DC
- SLS LUX Hotel & Residences Cabo – Murano Beach
- SLS LUX Hotel & Residences Cancun
- SLS LUX Hotel & Residences Mexico City – Polanco
- SLS LUX Hotel & Residences Puerto Vallarta
- SLS Hotel & Residences Punta Mita
For more information on sbe and SLS Hotels, click here.