Luxury hotel giant expands its global footprint
June 29, 2018 (New York) – Proskauer advised longtime client AccorHotels in its agreement to invest $319 million in sbe Entertainment Group. AccorHotels will acquire 50% of sbe Entertainment Group’s common equity for $125 million, held in part by Cain International. Accor will also invest $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.
Through this partnership, AccorHotels will expand its geographic footprint in North American cities such as Los Angeles, Miami, Las Vegas and New York with iconic hotels. In addition, sbe’s core millennial customer base will gain access to the AccorHotels platform.
Paris-based AccorHotels is a world-leading travel and lifestyle group and digital innovator offering unique experience in more than 4,300 hotels, resorts and residences across 100 countries. In addition to its core hospitality business, AccorHotels has become a world leader in luxury private residence rental and is active in the fields of concierge services, co-working, dining, events management and digital solutions. Its portfolio includes luxury brands Raffles, Fairmont, Sofitel Legend, SO Sofitel, Sofitel, onefinestay, MGallery by Sofitel, Pullman and Swissôtel; midscale and boutique brands Novotel, Mercure, Mama Shelter and Adagio; and economy brands ibis, ibis Styles, ibis budget, as well as the regional brands Grand Mercure, The Sebel and hotelF1.
The Proskauer team was led by co-head of the Private Equity Real Estate Group Jeffrey Horwitz and included partner Andrew Kleiman (Private Equity Real Estate); partners Stuart Rosow and Malcolm Hochenberg and associate Amy Zelcer (Tax); associates Jennifer Wong, Michael Saliba, Brittany Perskin, Nicholas Pellegrino and Nirali Parikh (Private Equity Real Estate; Private Equity and Mergers & Acquisitions); partner Michael Lebowich and associate Rebecca Sivitz (Labor & Employment); partner Steven Weinstein and associate Jennifer Rigterink (Employee Benefits & Executive Compensation); partner Daryn Grossman (Intellectual Property); partner Perry Cacace and associate Matthew Blair (Real Estate); senior counsel John Ingrassia (Antitrust); special counsel Aliza Cinamon (Environmental); law clerk Shelina Kurwa (Corporate); and law clerk Talya Scolnik (Labor & Employment).
Proskauer has represented AccorHotels for more than 20 years in a number of transactions totaling approximately $10 billion, including its $2.9 billion acquisition of FRHI Hotels and Resorts; its strategic alliance with Huazhu Hotels Group to create a major hotel company in China; the sale of Motel 6 and related U.S. economy hotel operations for $1.9 billion; the $1.32 billion sale of Red Roof Inns; more than $1.5 billion in sale-and-management-back and other transactions in the U.S. for Sofitel and Novotel properties; its acquisition of the management agreements of hotels owned or managed by Brazil Hospitality Group; and its long-term strategic partnership with Singapore-based Banyan Tree Holdings.