SBEEG Holdings, parent of hospitality and entertainment company sbe has made a $75 million agreement to sell its Katsuya and Cleo restaurant brands to the ONE Group, which will consequently open all future locations of the F&B outlets at sbe’s new SLS, Redbury, and Hyde hotels.
SBEEG will additionally gain 200,000 shares of the ONE Group, and now plans to focus on property management and operations.
“This is a win-win transaction for both companies,’’ says Sam Nazarian, sbe chairman and CEO. “With its considerable scale and expertise, the ONE Group is ideally positioned to expand the Katsuya and Cleo brands and incorporate them and other ONE Group brands at many of our planned SLS, Redbury, and Hyde hotel properties. This marks the beginning of an exciting, synergistic relationship that will encourage the continued expansion of our respective hotel and F&B brands, both domestically and internationally.’’
The companies anticipate opening approximately 10 additional ONE Group restaurants over the next five years.
“sbe is committed to increasing our brand value and securing long-term management deals for our hotel and other restaurant and nightlife brands,’’ Nazarian adds. “The relationship with the ONE Group will give sbe access to an even wider collection of high-energy, unique restaurant concepts that can be integrated into our hotels to create an exceptional guest experience. This enables us to remain asset-light, while deploying resources to incubate innovative ideas. Our goal is to continue to create and monetize those innovations.’’
The move furthers sbe’s its asset-light strategy, along with the recent sale of SLS Hotel South Beach and SLS Hotel Beverly Hills, though it will continue to manage both properties.
Sbe also recently expanded its real estate development arm with Dakota Development, which will conceive a variety of establishments, including SLS, Redbury, and Hyde developments around the world.
