Business & Finance

sbe Signs 10 Global Hospitality Deals in North America, Latin America, and Middle East

NEW YORK, NY. October 24, 2017 - sbe, the leading lifestyle hospitality company that develops, manages and operates award-winning international hospitality brands, has confirmed another 10 deals to bring its hotels, residences, and restaurants to new territories in Latin America and the Middle East, through a mix of management and licensing agreements. Building on its already robust pipeline, the company stands to double its global hotel footprint by 2021. Additionally, an estimated 24 restaurants and lounges are going to be part of the new and existing hotel pipeline, further emphasizing the company's stance on offering a 360-degree experience for guests.

Sam Nazarian, Founder and CEO of sbe, said: "sbe is further expanding our global footprint across our entire portfolio ¨C from luxury hotels and residences to fast casual dining. With these 10 new deals, we are enhancing our already extensive pipeline and enjoying a period of unprecedented growth. Our pipeline demonstrates the versatility and strength of our brands on a global scale, and we look forward to continuing to develop our brands both domestically and internationally."

Licensing and management deals have been signed for sbe's flagship SLS brand with plans to open in Mexico, Qatar, Uruguay and Argentina.

Adding to its Middle Eastern pipeline, sbe is working with its partner from Mondrian Doha, Al Hamla Real Estate Investments LLC, to introduce the SLS brand to The Pearl development in Doha, Qatar. The SLS Doha will comprise a 200 key managed hotel, 100 key residences, 50 serviced apartments and three restaurants. It is slated to open in 2020.

In Latin America, sbe will manage SLS Mexico City Pedregal, a 150 key hotel with 150 key branded residences located in the upmarket Pedregal area of Mexico City. The agreement with IDU, Mexico City's largest residential developer, will see the ground-up build open in 2021.

Additionally, sbe has approved projects with approximately 300 keys for developing SLS Punta del Este Residences in Uruguay.

SLS Pilar Residences will also open in 2020 ¨C a 173 key residential project in Pilar, Buenos Aires, Argentina with BARZA.

sbe's Mondrian brand will make its debut in Mexico in Playa del Carmen with a licensing deal for a 100 key condominium hotel expected to open in 2021. The deal with Howard Hospitality Group will see the Mondrian brand hotel built on the Yucat¨¢n Peninsula's Riviera Maya in downtown Playa del Carmen. Ground breaking will commence in Q3 2018.

Mondrian Doha marked the opening of sbe's first Middle Eastern hotel this October. Designed by Marcel Wanders, Mondrian Doha boasts 270 distinctive rooms, a culinary emporium, the largest ESPA spa in the world, and one of the most ornate ballrooms in Qatar. The company has plans to open two new properties in Dubai, United Arab Emirates including a Mondrian in 2019 and Delano in 2018. Owned by IFA and managed by sbe, Delano Dubai will feature 110 hotel rooms and 95 residences.

Hyde Doha will introduce 114 managed serviced apartments to Doha's business district near Rawdat Al Khail Street, which is expected to open in 2020. The development will include three food and beverage outlets and rooftop lounge and pool.

The Sanderson Ortak§à̈y will launch in Istanbul, marking the brand's first foray outside of London. The boutique hotel will be managed by sbe, owned by EMTA AŞ, comprise over 40 keys and will be situated in a highly coveted location on the Bosphorous.

Following the announcement of Mondrian Park Avenue which opened this October, sbe looks to further strengthen its presence in North America, including plans to manage an Originals in a prime Los Angeles location.

In addition to the recent appointment of Daniel Del Olmo as CEO of sbe subsidiary, Disruptive Restaurant Group, the company announced exciting plans to further expand its award-winning gourmet burger brand, Umami Burger, around the world. Umami has signed a multi-restaurant deal with one of Mexico's best operators to open 10 restaurants with the potential to grow to 30. Additionally, the brand that started in Los Angeles is also in discussions to open outlets in the Gulf Region, including the most sought-after locations in Dubai over the next few years.

The 10 new deals add to a rapidly expanding global growth pipeline which will see sbe open SLS Hotels and Residences in key strategic locations including SLS Baha Mar Hotel & Residences at the $4.2 billion resort destination in the Bahamas (November 2017); SLS LUX Brickell, sbe's second SLS Hotel & Residences to open in the bustling Miami area along with a Katsuya and SBar (February 2018); SLS Hotel & Residences Philadelphia, US, designed by Philippe Starck (2019); SLS Atlanta, US (2019); SLS Washington D.C., US (2019) designed by Piero Lissoni; SLS Cancun, Mexico (2020); and SLS Zihuatanejo, Mexico (2020).

About sbe

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, sbe has an unparalleled global portfolio featuring 22 world-class lifestyle hotel properties in 9 attractive gateway markets and 136 global world-renowned hotel, entertainment and food & beverage outlets. 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, Redbury, Hyde Hotel & Residences, Clift, Hudson, Sanderson and St Martins Lane. In addition, sbe has the following internationally acclaimed restaurants and lounges: Katsuya, Cleo, The Bazaar by Jos¨¦ Andr¨¦s, Fi'lia by Michael Schwartz, Umami Burger, Hyde Lounge and Skybar. More information about sbe can be obtained at sbe.com.

020 3003 6519

Coming Up In The December Online Hotel Business Review

Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotel’s operation that isn’t touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law – real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott International’s acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important – the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding it’s much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.