The company behind the STK restaurant brand, which has a site at the ME London Hotel, has struck a $75m (£49m) to take over 12 new restaurants in a move designed to increase its global presence.
The company has entered into an agreement with SBEEG Holdings (SBE), the holding company of the SLS, Redbury and Hyde hotel brands, to purchase the Katsuya and Cleo restaurant chains and establish a strategic relationship to open further sites at new SBE hotels.
By the end of 2015, it is anticipated that there will be up to 12 owned and managed/licensed Katsuya and Cleo locations globally.
The acquisition includes four Katsuya locations in Los Angeles that are company-owned and operated. The One Group will also receive license fees from the two managed Katsuya locations in SLS hotels in Las Vegas and Miami and from two additional managed locations, expected to open in the Bahamas and Miami.
A licensing agreement with Alshaya for the Middle East, meanwhile, includes three Katsuya restaurants, with a commitment for a further 14 locations in the region over the next 5 years.
Jonathan Segal, CEO of The One Group, said the new restaurant brands will increase the group’s portfolio of one, two and three meal a day restaurants for its hotel partners to choose from as part of its hotel food and beverage programme.
“This deal will be both incredibly synergistic, since the existing domestic restaurants are in markets we currently operate in, as well as additive to our growth, as it will open up geographic expansion into the Middle East.
“Further, the acquisition will allow us to take the Katsuya and Cleo brands into existing STK markets and gives us a great opportunity to expand all of our brands into new SLS and Redbury hotels in the future – providing additional potential avenues for the growth of our hospitality business moving forward.”
The agreement includes the option to launch additional restaurants at new SLS, Redbury and Hyde hotels, with the company expecting this to translate into 10 new restaurant openings over the next five years.
The One Group’s primary restaurant brand is STK, a modern twist on the American steakhouse concept with locations in major metropolitan cities throughout the US and Europe.