LOS ANGELES—SBEEG Holdings, LLC, parent of hospitality and entertainment company sbe, has inked an agreement to sell its Katsuya and Cleo restaurant brands to The ONE Group.
According to the company, the sale establishes a strategic partnership to open Katsuya, Cleo and The ONE Group restaurants at sbe’s new SLS, Redbury and Hyde hotels globally.
SBEEG will receive $75 million and warrants to acquire 200,000 shares of The ONE Group.
“This is a win-win transaction for both companies,’’ stated sbe Chairman/CEO Sam Nazarian. “With its considerable scale and expertise, The ONE Group is ideally positioned to expand the Katsuya and Cleo brands and incorporate them and other The 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 food and beverage brands, both domestically and internationally.’’
The companies expect to have the opportunity to open at least 10 additional The ONE Group restaurants at new SLS, Redbury and Hyde hotels during the next five years, according to sbe.
Nazarian added the sale aligns sbe’s strategy to focus on management and operations of its hotel, restaurant and entertainment properties.
As part of its “asset-light’’ strategy, sbe recently sold SLS Hotel South Beach and SLS Hotel Beverly Hills. It will continue to run SLS Hotel South Beach in a long-term management deal; it also will continue to oversee the SLS brand at the Beverly Hills property.
Earlier this month, Nazarian detailed the spinoff of sbe’s real estate development arm into a new entity called Dakota Development, which has developed a range of design-forward properties, including SLS developments in Las Vegas, Beverly Hills and South Beach; Redbury Hotels in Hollywood and South Beach, Katsuya by S+tarck and Cleo restaurants, and Hyde nightlife venues.