The French hospitality group will acquire the 50% of sbe’s common equity held in part by real-estate investment firm Cain International for US$125 million, with the group’s founder and CEO Sam Nazarian continuing to own the remaining 50%.

Additionally, AccorHotels will invest US$194 million in a new preferred debt instrument that will be used to redeem all existing preferred units, also held in part by Cain International, bringing the total investment to US$319 million.

sbe will remain independent and continue to be led by Nazarian, while retaining its global headquarters in New York.

“This long-term investment by AccorHotels provides sbe, its customers and hotel owners with greater depth and breadth around the world,” Nazarian commented.

This deal, building on sbe’s acquisition of Morgans Hotel Group in 2016, would further accelerate sbe’s growth domestically in the United States and expand into new markets internationally, particularly in Europe, he added.