Remember in March when seemingly-unknown (at that point) Chinese Insurance group Anbang tried to outbid Marriott to secure Starwood’s portfolio? The back-and-forth rally lasted 21 days, and at the end of it all, Starwood and Marriott signed papers and agreed upon a merger on April 8, 2016. This week we learned about another merger within the industry—albeit a little less edge-of-your seat exciting.
On Monday, SBE Entertainment Group revealed its agreement to acquire the Morgans Hotel Group. SBE—the American hospitality, real estate and entertainment company—is reportedly buying the brands in an $82 million all-cash transaction. That will give the company 13 domestic and international hotel management contracts including SLS, Hyde, Delano and The Redbury hotels.
By the end of the year, SBE will acquire five more upcoming properties once completed: SLS Park Avenue in New York City, SLS Brickell in Miami, Hyde Hallandale in Florida, Townhouse Hotel in Miami Beach and the Mondrian Doha. Including the incoming properties and management contracts, the transaction is said to be valued at around $800 million. Following the deal, SBE will own 20 lifestyle hotel properties in nine markets with 6,000 keys and over 90 entertainment and F&B venues such as The Bazaar by José Andrés and Umami Burger.
