Big news for both SBE and STK, the two hospitality giants behind many of the nation’s most recognizable restaurant brands. Yesterday, Page Six reported that SBE head Sam Nazarian would be selling off two of his biggest restaurant brands to rival One Group, the corporate name behind STK — which just opened a swanky new outpost in Westwood — and Bagatelle.
According to the insider gossip site, Nazarian’s decision to sell off Katsuya and Cleo, of which there are a dozen combined locations from LA to Florida to the Middle East, comes after some much-needed reorganization. SBE bet big on their flagship SLS Las Vegas hotel, and has yet to see the sort of numbers that would make them happy with the gamble. Add to that the recent sale of the SLS Beverly Hills and SLS South Beach, plus some more personal troubles for Nazarian within the company, and the reduced business footprint makes a lot of sense.
For STK’s One Group, this seems like a big buy-low sort of win, as the Katsuya and Cleo properties are well-established in the domestic and international restaurant market, and should only increase in value as the global dining scene continues to rise. More news as it becomes available.