MIAMI, Nov. 24, 2020 /PRNewswire/ -- After a 2018 acquisition of a 50% stake in sbe, Accor, a world-leading hospitality group, takes full ownership of sbe's hotel brands and management platform from original founder Sam Nazarian. Nazarian now takes full ownership of Disruptive Restaurant Group (DRG) and its national food & beverage business. He also shifts focus to shaping the future of food service by increasing a majority share in the fast-growing C3 digital kitchen and lifestyle food hall platform, a subsidiary of sbe. C3 will count over 200 digital kitchens by year end 2020.
The cash and asset swap deal translates into an enterprise value of $650 million for the hotel and restaurant business of sbe that Accor is acquiring. Sam Nazarian's full ownership of DRG and increased majority stake in C3 account for a $200 million enterprise value. DRG's iconic global brands such as Katsuya, S'Bar, Doheny Room, Nightingale Plaza, XIV, Colony, Kumi and three west coast Hyde nightlife locations. C3's wide umbrella focuses on the convergence of technology, underutilized kitchen spaces and world class culinary talent. Wildly successful global C3 brands include Umami Burger, Krispy Rice, Plant Nation, EllaMia, Sam's Crispy Chicken, Dani Garcia's Minuk, and soon-to-launch Citizens Food Hall and CitizensGO app.
"Since opening my first hotel in January 2009, the game changing SLS hotel at Beverly Hills, I always knew that the lifestyle segment within the hospitality space would become the most exciting part of the mainstream hotel business. Ever since I established my partnership and sincere friendship with my mentor Sébastien Bazin, I also knew that there would be no one better, along with the amazing Accor global family, to take what we have built at sbe hotels into the next stratosphere," remarked Sam Nazarian, CEO of Disruptive Restaurant Group and majority shareholder of C3. "I am equally thrilled to have launched and continue to lead Disruptive Restaurant Group as well as C3. Having just debuted 18 months ago, C3 has already become a true pioneer and disruptive force in the digital kitchen and technology space, along with Accor and Simon properties."
Under the leadership of Nazarian and driven by the unparalleled support of Accor, sbe has become one of the leading luxury and lifestyle groups in the world. Accor's ownership stake includes the Delano, Mondrian, SLS, and Hyde hotel brands along with the vast majority of sbe's restaurants and nightlife brands including Cleo, Fili'a or Carna by Dario Cecchini. These brands will be at the heart of Accor's newly created global, asset-light Lifestyle & Entertainment platform.
"Looking three years back, when we initially invested alongside Sam Nazarian, I am amazed by the journey we've accomplished. Today marks a milestone crystalizing these last years' successes and international development," remarked Sebastien Bazin, chairman and CEO of Accor. "This redesigned ownership structure will accelerate growth and a leaner management structure. Sam is a visionary leader and a relentless and talented entrepreneur. I am thankful he will continue the journey as my special advisor."
Since Accor's initial investment in sbe in 2018, its strong pipeline of 40 hotels has more than doubled, with key upcoming openings such as Mondrian Shoreditch London, SLS Cancun and SLS Dubai in 2021. The global appeal of sbe brands' is further demonstrated by rapid growth in new destinations across Europe, the Middle East and Asia. Accor will continue to benefit from the unrivalled expertise and network of Nazarian, who will remain special advisor to Bazin.
Nazarian continued, "sbe has operated and opened 22 hotels and close to 200 bars and restaurants in 9 countries, with a pipeline of over 40 hotels and resorts to come. I am so proud that we have built the largest and most exciting collection of luxury lifestyle destinations and brands in the world. The excitement continues as I will be alongside Sébastien and his team for the next three years to help bring to life some of our new projects and brands as well as to continue to learn from such a respected visionary in the hospitality space."
Established in 2002 by Founder and CEO Sam Nazarian, sbe is a privately-held, leading lifestyle hospitality company that develops, manages and operates award-winning hotels, residences, restaurants and nightclubs. Through exclusive partnerships with cultural visionaries, sbe is devoted to creating extraordinary experiences throughout its proprietary brands with a commitment to authenticity, sophistication, mastery and innovation. Following the acquisition of Morgans Hotel Group, the pioneer of boutique lifestyle hotels, in partnership with Accor, sbe has an unparalleled global portfolio which will see 36 hotels and over 200 global world-renowned culinary, nightlife and entertainment venues by the end of 2020. The company is uniquely positioned to offer a complete lifestyle experience - from nightlife, food & beverage and entertainment to hotels and residences, and through its innovative customer loyalty and rewards program, The Code, as well as its award-winning international real estate development subsidiary, Dakota Development - all of which solidify sbe as the preeminent leader across hospitality. The company's established and upcoming hotel brands include SLS Hotel & Residences, Delano, Mondrian, The Redbury, HYDE Hotel & Residences, and The House of Originals. In addition, sbe has the following internationally acclaimed restaurants and lounges under subsidiary Disruptive Restaurant Group: Katsuya by Chef Katsuya Uechi, Umami Burger, Cleo, Fi'lia, Carna by Dario Cecchini, Leynia and Diez y Seis by Chef José Icardi, HYDE Lounge, S Bar, Doheny Room, Nightingale, Skybar, Bond, and Privilege. To learn more, visit sbe.com.
C3 (Creating Culinary Communities), is a revolutionary food and beverage platform, consisting of an array of limited service culinary brands. C3 is focused on disrupting the food & beverage industry by capitalizing on rapidly evolving customer preferences such as food halls, virtual kitchens and mobile delivery. All of C3's concepts are inspired by either existing or established sbe full-service brands or created by C3's award winning chef partners. C3 was launched as a partnership between sbe; Simon, a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations; and Accor, the world-leading augmented hospitality group offering unique experiences in more than 5,000 hotels and residences across 110 destinations. By combining sbe's ability to build and grow successful, award-winning food and beverage concepts, Simon's extensive real estate footprint and Accor's international hotel base of 5,000 global properties, C3 is enviably positioned to be the leader and pioneer in this space. C3 virtual kitchens include: Umami Burger, Sam's Crispy Chicken, Krispy Rice, Plant Nation, EllaMia, La Gente Tacos and Dani Garcia's Minük, with many other brands in the pipeline. Citizens food hall will open in New York City at Manhattan West in 2021. C3 will open over 200 virtual kitchens by the end of 2020. To learn more, visit c3sbe.com.