NEW YORK —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Hanson, the founder of New York-based B.R. Guest Inc. and a 50-50 partner in the new venture with hospitality magnate Sternlicht, says he expects to expand the company from its current 16 outlets to between 60 and 80 over the next two years. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
“And that’s really just the beginning,” Hanson said. “Barry’s a visionary. He’s five steps ahead of everybody else in the industry. Look how he assembled Starwood [Hotels & Resorts Worldwide]. He built it into one of the biggest hospitality companies in the world in only 10 years. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
“I feel like I’m in at the ground floor, like I’m the 10th employee of Microsoft,” Hanson added. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
In a deal that Hanson said took more than nine months to negotiate, Starwood Capital Group Global LLC—Sternlicht’s Greenwich, Conn.-based private-equity firm—purchased 16 high-end restaurants from Hanson and his minority partners for $150 million. The restaurants, which are located in New York, Las Vegas and Chicago, include Fiamma, Ruby Foo’s, Blue Water Grill, Atlantic Grill, Primehouse and Dos Caminos. The company was valued at about eight times EBITDA, or earnings before interest, taxes, depreciation and amortization. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
The restaurants are expected to generate sales of about $120 million in 2007 and $140 million in 2008, Hanson said. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
As part of the deal, Starwood also acquired Hanson’s management firm, B.R. Guest, which now is to own and operate all current and future restaurants under the umbrella company B.R. Guest LLC. Hanson owns a 50-percent share in the new venture. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Hanson, who held a 72-percent stake in the restaurants prior to the acquisition, said his 64 minority partners did “quite well” in the deal, noting that some received more than 20 times the value of their original investment. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
He also said 34 B.R. Guest employees who had some form of participation in the company would receive a “major payday.” —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
“I’m a big believer that people who work hard should get a share,” he said. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Hanson said he plans to establish some kind of employee profit sharing in the new venture. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
While Hanson would continue leading daily operations, he said he sees Sternlicht as “the boss” and doesn’t consider himself Sternlicht’s equal. He added that Sternlicht “is not a micromanager.” —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
“He’s looking for people who can put their head down and run,” Hanson said. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Sternlicht is said to have great faith in Hanson’s abilities as well. Edd Hendee, vice president of Starwood Capital’s acquisition group, told The New York Post: “Steve is an unbelievable operator. We wanted that engine and his infrastructure. And he understands the hotel business.” —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Sternlicht, who is Starwood Capital’s chairman and chief executive, formed the private real estate investment firm in 1991, after launching Starwood Hotels & Resorts Worldwide in 1995. Until 2004 he was chairman and CEO of the parent of the Westin, Sheraton, W, St. Regis and other lodging brands, and he remains its largest shareholder. Starwood Hotels last year generated about $14 billion in sales. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Sternlicht’s Starwood Capital and its affiliates have invested about $5.8 billion in transactions totaling more than $25 billion over the past 15 years. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
The $150 million acquisition of Hanson’s restaurants marks the second purchase of a notable New York-based fine-dining company in recent weeks. New York- and Los Angeles-based Patina Restaurant Group agreed to buy publicly held luxury steakhouse operator Smith & Wollensky Restaurant Group for about $79.6 million. As part of the deal SWRG founder and chief executive Alan Stillman will purchase back all of the company’s New York locations, including the original Smith & Wollensky on Third Avenue. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Hanson had bid on SWRG—both before and after Houston-based Landry’s Restaurant Group made a run at it—but that didn’t work out, he said. “It would have been a great fit, though,” he said. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Hanson says he is in the market to acquire high-end dining groups that have several restaurants already up and running in a particular area. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
“It could be a chef who has three, four or five restaurants,” he said. “He already knows how to run multiple locations, but now is ready to move to the next level, which requires a whole other skill set.” —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Noting that he expects to announce several “acquisitions or mergers or joint ventures” over the next six months, Hanson said he currently is talking to an operator in California and two groups in Chicago. All acquisitions would be funded through Starwood Capital. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Expansion would take place through both hotel and freestanding locations. For example, Hanson plans to open an 18,000-square-foot, 700-seat Dos Caminos in the Venetian Palazzo complex in Las Vegas in September. He also is getting ready to open a new 250-seat Primehouse in Manhattan. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
He said local chefs or groups that are acquired in the future would retain their own individual creativity and style, but the new acquisitions would use B.R. Guest’s sophisticated back-of-the-house systems. “The way we manage food, liquor, labor, culture, technology—it’s unparalleled in the industry,” Hanson said. “Things like payroll, human resources and purchasing also could be managed centrally, to a certain extent.” —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
While freestanding restaurants will be part of the mix, the new B.R. Guest also plans to grow through Sternlicht’s rapidly expanding international hotel empire. Prior to the acquisition, Sternlicht and Hanson had entered into an exclusive joint venture in which Hanson agreed to open and operate restaurants in SCG’s eco-friendly “1” Hotels and Residences. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
In addition to owning “1” hotels, Starwood Capital also owns and operates other hotel properties in the United States and Europe, including Societe du Louvre, which operates 14 luxury and 800-plus budget hotels in Europe; and Le Meridien hotels, with 32 luxury properties in Europe, North America, Africa and South America. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Hanson said he is modeling the new B.R. Guest on LVMH, the French luxury goods conglomerate. LVMH—short for Louis Vuitton Moët Hennessey—is the parent of about 60 largely autonomous subcompanies that each run several upscale brands. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
“We will bring top operators together under one infrastructure,” Hanson said. —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
Commenting on the deal, he said: “I feel like I’ve been operating in the minor leagues up until now, and we’ve just started building an empire. It’s one of the most rewarding things I’ve ever been able to do.” —The recent high-ticket purchase of Stephen Hanson’s multiunit restaurant empire by Barry Sternlicht’s Starwood Capital Group is expected to fuel the company’s rapid international expansion through a wave of acquisitions together with the organic growth of its proprietary fine-dining brands.
