SLS Hotel at Beverly Hills Secures Long-Term Loan Facility Extension

Nazarian Enterprises Leads Transaction to Grant Long-Term Brand Licensing Agreement for Use of SLS Brand at the Highly Regarded Luxury Hotel Property

LOS ANGELES--()--Nazarian Enterprises announced today that it has led the extension of the current credit facility for the award-winning SLS Hotel at Beverly Hills. In doing so, Nazarian Enterprises and its partners have obtained a long-term brand licensing agreement for use of the SLS Brand at the Property. In this transaction, led by Nazarian Enterprises’ CEO David Nazarian, and alongside Orix and partners Lowe Enterprises, Credit Suisse and Washington Holdings, the Property’s debt burden has been reduced and additional capital has been infused into the SLS Hotel at Beverly Hills, allowing the Property to deliver favorable long-term investment returns. The twenty-year SLS brand license ensures that SBE it will benefit from the award-winning SLS Brand for years to come.

In its first full year of operations, the SLS Hotel at Beverly Hills has experienced positive financial growth, and the continued upward trend in the Property’s performance in subsequent months have been achieved in spite of the worst economic climate in recent history.

Nazarian Enterprises was able to lead this refinancing due to the growth of the SLS Brand. The SLS Hotel at Beverly Hills, one of America’s top luxury hotels, was named as a “Hot List Hotel” of 2009 by Conde Nast, Virtuoso’s 2009 “Best of Best” for Achievement in Design, and the Magellan Award from Travel Weekly for Best Upscale Hotel/Resort.

The SLS Hotel at Beverly Hills was developed and is operated by SBE and owned in partnership with Nazarian Enterprises and its partners. It is home to noted restaurants, The Bazaar and Tres; the former of which was awarded a Four-Star Review from The Los Angeles Times, Esquire magazine’s “Best New Restaurant of the Year,” one of the “50 Best New Restaurants of 2009” by Travel + Leisure and GQ magazine’s “Top 10 Best New Restaurant” of 2009. Both dining experiences, developed by highly acclaimed chef Jose Andrés and launched by SBE’s Sam Nazarian, have quickly become top choices among restaurant reviewers, visitors and the city’s residents.

Along with the SLS Hotel at Beverly Hills’ 297 rooms, the hotel’s Ciel Spa has set a new standard in relaxation and rejuvenation for Southern California. As well, and in less than two years’ time, the Property’s catering, also by Jose Andrés, has brought a new level of luxury and culinary delight to partygoers, and wedding and event planners.

“Nazarian Enterprises’ commitment in our role leading this refinancing as the primary asset manager of the SLS Hotel at Beverly Hills is clearly demonstrated by this transaction. Working closely with our partners we have solidified what we all agree is a strong investment, which has built the foundation for Nazarian Enterprises to lead the growth of the luxury SLS Brand,” says David Nazarian, CEO of Nazarian Enterprises.

Moving forward, SBE will continue to oversee Starwood Hotels’ Luxury Collection and management of the property on a day-to-day basis as it continues to emphasize the evolution and growth of the SLS Brand, The Bazaar and the Property’s other retail, food and beverage operations.

“Nazarian Enterprises continues to be an outstanding partner to the SLS Hotel Brand not only providing long-term strength to the Property, but in continuing to build the foundation upon which other SLS luxury properties will be established,” says SBE CEO and Founder Sam Nazarian. “Nazarian Enterprises and SBE’s leadership in negotiating this extension with our lenders and equity partners clearly speaks to our commitment to continued growth of both the SBE and SLS brands.”

SBE and Nazarian Enterprises are both based in Los Angeles, California.

About David Nazarian and Nazarian Enterprises:

Nazarian Enterprises, led by CEO David Nazarian, focuses on the diversification of assets across a variety of interests in the private and public markets. Nazarian Enterprises Investments invests with strong partners that run private equity and hedge funds and makes direct investments in companies that include involvement with their Boards. The strategy for Nazarian Enterprises Investments includes sizable investments in leading funds around the world. Key industries include aerospace, manufacturing and logistics companies, technology, hospitality and alternative energy, among others.

Nazarian Enterprises’ Private Equity and Venture Capital Funds seek capital appreciation primarily through control or significant-influence positions in lower middle-market growth companies. Through both Nimes Capital – a private equity fund providing growth capital to development companies with an emphasis on renewable energy, water and wastewater management and clean technologies and Smart Technology Ventures Funds I, II and III concentrated on the synergistic and converging fields of wireless communications and broadband infrastructure.

Nazarian Enterprises Properties seeks investments in value-added and distressed properties within the commercial, industrial and multi-family residential real estate and hospitality markets. Nazarian Enterprises acts as an institutional financial partner to operating teams with successful track records. The long-term investment strategy for Nazarian Enterprises Properties is value creation and income generation. Current hospitality investments include hotels in Southern California, Oklahoma, Texas, New Mexico and Florida ranging from high-end boutique hotels to flagged select service hotels. The Company also invests through its affiliate SBE Entertainment, a high-end hospitality and real estate development company. SBE acquires, develops and manages exceptional projects and associated brands through its specialized hotel, restaurant and nightlife and real estate divisions.

In addition to his responsibilities with Nazarian Enterprises, David Nazarian is active in the greater Los Angeles community through his involvement as a member of the Board of Governors and the Investment Committee for Cedars-Sinai Medical Center and the Board of Directors and Investment Committee of the UCLA Foundation.

About SBE:

Founded in 2002, Los Angeles-based SBE brings exquisite balance to the interrelated worlds of luxury hospitality, real estate development and events. As a privately held company founded and helmed by CEO Sam Nazarian, SBE acquires, develops and manages exceptional projects through its specialized operating divisions – Hotels, Restaurants, Nightlife, Real Estate & Events. The industries gathered under the SBE umbrella create unparalleled opportunities for synergy and branded all-encompassing lifestyle experiences. With a mission to redefine standards of excellence and innovation, Nazarian and his team draw on a wealth of institutional expertise and entrepreneurial know-how to create unique alliances between these divisions, providing a complete lifestyle experience for SBE clients, whether they are staying in SBE properties or enjoying SBE restaurants and nightclubs.

SBE has also harnessed the creativity and innovation of the best minds in the business, including design visionary Philippe Starck, with whom the company has an exclusive agreement in hotels, restaurants and lounges in the U.S., Canada, Caribbean and Mexico. The result: quality products rich in detail and originality, each created for a discriminating and diverse clientele. SBE’s Restaurant and Nightlife division stays ahead of the curve by constantly creating trend-setting restaurant and nightlife concepts as well as expanding the reach of the popular destinations within its portfolio for SBE’s A-list clientele.

Contacts

Press:
The Rose Group
Robbie McKay or Jeff Rose, 310-280-3710
Robbie@therosegrp.com or Jeff@therosegrp.com

Release Summary

Nazarian Enterprises leads transaction to extend loan facility on the SLS Hotel at Beverly Hills.

Contacts

Press:
The Rose Group
Robbie McKay or Jeff Rose, 310-280-3710
Robbie@therosegrp.com or Jeff@therosegrp.com