Colony Capital invests $35m in LA Hotel business SBE

Tom Barrack’s Colony Capital has made a reported $35m investment in ‘hospitality, real estate development and lifestyle’ company SBE.

Colony Capital, the Los Angeles-based private equity real estate firm, has bought a minority stake in SBE, a neighbouring hospitality, real estate development and lifestyle business.

The size of the investment was not revealed in an announcement by SBE, but according to the Los Angeles Times, it was in the region of $35 million.

The deal will enable Colony founder Tom Barrack and principal Richard Nanula to sit on the board of SBE.

It will enable SBE, founded by chairman and chief executive officer Sam Nazarian, to grow its brands including SLS Hotels and Katsuya by Stark restaurants by helping it to buy up other assets and hotel and restaurant brands.

The investment will also enable SBE to expand internationally. After entering the Eastern US market, SBE will also look to expand into Europe.

Nazarian said: “This is a game changing partnership for SBE and one that has us poised for powerful growth on a global scale.”

“Having his [Barrack’s] support, and that of Colony Capital, positions us very well for a successful expansion into new markets.” 

Barrack described SBE as “the most relevant emerging hospitality management company in the industry today”. He said: “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.”