Hospitality group SBE is expanding its Delano brand, unveiling plans to open a new hotel in Southern California's Coachella Valley. 

Scheduled to open in 2020, the Delano Hotel & Residences Indian Wells will include 154 hotel rooms and 54 condos. 

The $85 million project marks the brand's inaugural residential development in the U.S.

"Indian Wells is a premier destination, home to many prominent entertainment events like the Coachella Music Festival and the world-renowned tennis tournament Indian Wells Masters," said SBE founder and CEO Sam Nazarian.

The Indian Wells hotel will house extensions of SBE's Katsuya restaurant, created by chef Katsuya Uechi, and its Skybar concept. The Delano Indian Wells Skybar will feature a day-to-night pool deck and focus on delivering an "incredible mixology program."

The Indian Wells hotel joins Delano's South Beach and Las Vegas locations. The brand is scheduled to open a Dubai property -- which will also have residences -- in the first quarter of next year. 

"Delano is in the midst of an incredible growth period. We are going to bring the brand to the South American and European markets, as well continue U.S. expansion, in the next several years. We are looking for global destinations in gateway markets that can welcome this resort brand," said Nazarian. 

Delano's expansion efforts follow AccorHotels' agreement to purchase a 50% stake in SBE earlier this year. 

Established in 2002, SBE operates hotels, restaurants and nightclubs. In addition to Delano, its hotel brands include SLS, Mondrian, and Redbury.

By the end of 2018, SBE will operate 25 hotels and more than 170 restaurants and entertainment venues.

 

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