{"id":1004160649,"date":"2016-12-05T02:38:17","date_gmt":"2016-12-05T10:38:17","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004160649"},"modified":"2020-05-11T03:57:20","modified_gmt":"2020-05-11T11:57:20","slug":"sbe-closes-purchase-of-morgans-hotel-group","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/","title":{"rendered":"SBE Closes Purchase of Morgans Hotel Group"},"content":{"rendered":"<p>By Scott Baltic, Contributing Editor<\/p>\n<p><strong>Los Angeles\u2014<\/strong>In a transaction valued at $805 million, SBE, along with partners Yucaipa Cos. and Cain Hoy Enterprise, has completed the acquisition of Morgans Hotel Group, SBE announced late last week. The transaction more than doubles the number of hotels in SBE\u2019s portfolio.<\/p>\n<div id=\"attachment_1004160739\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004160739\" data-attachment-id=\"1004160739\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/20140412193209sam_nazarian\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg\" data-orig-size=\"981,736\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS-1Ds Mark II&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"20140412193209!Sam_Nazarian\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Sam Nazarian&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg?w=981\" class=\"wp-image-1004160739 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg\" alt=\"Sam Nazarian\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg 981w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg?resize=768,576 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-1004160739\" class=\"wp-caption-text\">Sam Nazarian, SBE<\/p><\/div>\n<p>The expanded company, which will continue to operate under the SBE names, controls a total of 135 assets, an SBE spokesperson told <em><a href=\"https:\/\/www.commercialsearch.com\/news\/\" target=\"_blank\">Commercial Property Executive<\/a><\/em>: 22 hotels and residences (residences are connected to hotels), 71 restaurants and 42 nightlife venues.<\/p>\n<p>SBE Founder &amp; CEO Sam Nazarian will retain all day-to-day management responsibilities and half of the common stock interests in SBE. The remaining half of the common stock and $150 million of newly issued preferred equity are shared equally between Cain Hoy and Yucaipa.<\/p>\n<p>Cain Hoy CEO Jonathan Goldstein and Yucaipa founder Ron Burkle will join Nazarian on SBE\u2019s board of directors.<\/p>\n<p>The SBE announcement referenced debt financing provided by Security Benefit, but did not give further details.<\/p>\n<p>The acquisition combines Morgans\u2019 Delano and Mondrian brands, along with 13 domestic and international hotel management and franchise\/licensing agreements, with SBE\u2019s collection of hotel brands, including SLS hotels, The Redbury hotels and Hyde hotels. As part of the Morgans acquisition, SBE takes direct ownership of the 878-key Hudson Hotel in New York City, the 372-key Clift Hotel in San Francisco and the 194-key Delano Hotel in South Beach, Miami.<\/p>\n<p>SBE\u2019s restaurant brands include The Bazaar by Jos\u00e9 Andr\u00e9s, Fi\u2019lia by Michael Schwartz, Katsuya, Cleo, Umami Burger and Hyde Lounge.<\/p>\n<p>\u201cCain Hoy and Yucaipa\u2019s investment significantly improves SBE\u2019s financial strength and provides us with the opportunity to invest funds to refresh the iconic Morgans-owned properties, Delano and Hudson,\u201d Nazarian said in a prepared statement. \u201cEqually important, it gives us the flexibility to pursue growth opportunities.\u201d<\/p>\n<p>SBE expects to open four hotels in 2017 (the MondrianDoha, Qatar; SLS Park Avenue New York; SLS Seattle; and Hyde Hotel and Residences, South Florida), which follow the recent openings of <a href=\"https:\/\/www.commercialsearch.com\/news\/sbe-launches-first-ny-hotel\/\" target=\"_blank\">The Redbury<\/a> in New York and <a href=\"https:\/\/www.commercialsearch.com\/news\/sbe-opens-sls-brickell-hotel-residences-in-miami\/\" target=\"_blank\">SLS Brickell Hotel &amp; Residences<\/a> in Miami. A further nine hotels are scheduled to open within the next two years, bringing SBE\u2019s portfolio to 35 hotel properties by the end of 2018.<\/p>\n<p>Houlihan Lokey served as financial advisor and O\u2019Melveny &amp; Myers served as legal advisors to SBE on the transaction.<\/p>\n<p><em>Image courtesy of <a href=\"https:\/\/www.sbe.com\/\" rel=\"nofollow\" target=\"_blank\">SBE<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The transaction, valued at $805 million, more than doubles the number of hotels in the company\u2019s portfolio.<\/p>\n","protected":false},"author":882,"featured_media":1004160739,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,21751,21783,1594,23891,21742,15],"tags":[32970,33021,32969],"class_list":["post-1004160649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-hotel","category-investment","category-los-angeles","category-national","category-latest","category-west","tag-morgans-hotel-group","tag-sam-nazarian","tag-sbe"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SBE Closes Purchase of Morgans Hotel Group - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SBE Closes Purchase of Morgans Hotel Group\" \/>\n<meta property=\"og:description\" content=\"The transaction, valued at $805 million, more than doubles the number of hotels in the company\u2019s portfolio.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-12-05T10:38:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-11T11:57:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"981\" \/>\n\t<meta property=\"og:image:height\" content=\"736\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/\",\"name\":\"SBE Closes Purchase of Morgans Hotel Group - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg\",\"datePublished\":\"2016-12-05T10:38:17+00:00\",\"dateModified\":\"2020-05-11T11:57:20+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg\",\"width\":981,\"height\":736,\"caption\":\"Sam Nazarian\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SBE Closes Purchase of Morgans Hotel Group\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\",\"name\":\"Scott Baltic\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"caption\":\"Scott Baltic\"},\"description\":\"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"SBE Closes Purchase of Morgans Hotel Group - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/","og_locale":"en_US","og_type":"article","og_title":"SBE Closes Purchase of Morgans Hotel Group","og_description":"The transaction, valued at $805 million, more than doubles the number of hotels in the company\u2019s portfolio.","og_url":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-12-05T10:38:17+00:00","article_modified_time":"2020-05-11T11:57:20+00:00","og_image":[{"width":981,"height":736,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/","url":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/","name":"SBE Closes Purchase of Morgans Hotel Group - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg","datePublished":"2016-12-05T10:38:17+00:00","dateModified":"2020-05-11T11:57:20+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg","width":981,"height":736,"caption":"Sam Nazarian"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/sbe-closes-purchase-of-morgans-hotel-group\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"SBE Closes Purchase of Morgans Hotel Group"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/12\/20140412193209Sam_Nazarian.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004160649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/882"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004160649"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004160649\/revisions"}],"predecessor-version":[{"id":1004434606,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004160649\/revisions\/1004434606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004160739"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004160649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004160649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004160649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}