Colony Capital Makes Minority Investment In sbe

Colony Capital has taken a minority stake in sbe, a Los Angeles-based hospitality, real estate development and lifestyle company. Financial terms weren’t announced. Thomas J. Barrack, Colony Capital’s Founder, Chairman and CEO, along with Richard Nanula, a principal, will sit on sbe’s board. Santa Monica, Calif.-based Colony is a real estate investment and advisory firm.


sbe, a leading hospitality, real estate development and lifestyle company, today announced that an affiliate of Colony Capital, LLC, a private, international investment firm, has made a strategic investment in its enterprise.  The partnership will focus on the national and international expansion of sbe’s award-winning hospitality platform.
Through its investment, Colony Capital will receive a minority ownership interest in sbe and Colony Capital’s Founder, Chairman and CEO, Thomas J. Barrack Jr., and Principal Richard Nanula will sit on sbe’s board of directors in key advisory positions. sbe Founder, Chairman and CEO, Sam Nazarian, will continue his role as Chairman of sbe’s board of directors, and David Nazarian, President of Nazarian Enterprises, has also been named to sbe’s board of directors.
In addition to growing the sbe platform from within, including its popular hotel brand SLS Hotels and restaurant brand Katsuya by Starck, Colony Capital and sbe will also look at expanding the hotel and restaurant management platform through the acquisition of existing assets and brands.
Together, Colony Capital and sbe will look to grow sbe’s collection of hotel, restaurant and nightlife brands into new markets, focusing first on the eastern United States and Europe.
“This is a game changing partnership for sbe and one that has us poised for powerful growth on a global scale,” said Sam Nazarian.  “Colony Capital’s expertise in the real estate and hospitality space is second to none.  I have the utmost respect for Tom and have long admired his perspective and unrivaled investment savvy.  Having his support, and that of Colony Capital, positions us very well for a successful expansion into new markets.”
“Sam has harnessed his vision and uncanny instincts to create the most relevant emerging hospitality management company in the industry today,” added Thomas J. Barrack, Jr.  “Having established a thriving platform of hotel and food and beverage assets, now is the optimal time to grow sbe’s reach and portfolio of brands.”
Leveraging their combined expertise, sbe and Colony Capital will continue the expansion of sbe’s hospitality platform, which includes the award-winning Katsuya by Starck, SLS Hotels, Redbury Hotels, The Bazaar by José Andrés, Cleo, The Abbey Food and Bar and Hyde Lounge brands.  Additional brands and assets held within the sbe platform include Gladstones Malibu, XIV by Michael Mina, The Colony, Industry, MI-6, the Sahara Las Vegas, Four Points Sheraton LAX and Ciel Spa.
Recently, sbe announced the expansion of SLS Hotels to South Beach, Miami, which will feature The Bazaar by José Andrés, Katsuya by Stark, Hyde Lounge South Beach and Ciel Spa.  The SLS Hotel at South Beach is scheduled to open spring 2012.
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