Days after Sam Nazarian’s return to SBE Entertainment Group, the company announced that it will be expanding into Mexico.
The firm, headquartered on L.A.’s Miracle Mile, announced Friday that it will manage five resort hotels to be built by Armar Group, a privately held Mexican real estate development and investment company.
The first project is a 200-room hotel with 250 residential units in Medano Beach in Cabo San Lucas, scheduled to open in 2017. The second project, in Cancun’s hotel strip, is a 150-room hotel with 150 residential units, slated to open in 2018.
Three other hotel projects will follow in Puerto Vallarta, Mexico City and Punta Mita, just northwest of Puerto Vallarta. A spokesperson for SBE said the company would not yet discuss how the projects will be financed.
The deal with the Armar Group follows the return of Nazarian, SBE’s founder, who rejoined the company at the end of March as chairman and chief executive after a 10-week leave following his testimony to Nevada gambling regulators about his illegal drug use.
The company also announced changes to its board of directors, which is now headed by Nazarian, his father Younes Nazarian and his brother David Nazarian. Three executives of Cain Hoy Enterprises resigned as the Greenwich, Conn., private-equity firm scales back its ties with SBE, ditching plans to be the vehicle through which SBE’s luxury hotel brand SLS buys and develops hotels.
The Mexico hotels are the latest location in SLS’ expansion. The firm is opening a hotel in the Bahamas in April; hotels in Philadelphia, Seattle, New York City, and Hollywood over the next three years; and a residential complex in Miami.
For reprint and licensing requests for this article, CLICK HERE.