LAS VEGAS—Stockbridge Capital Partners, the San Francisco-based investor that owns 90% of the SLS Las Vegas hotel on the Las Vegas Strip, has agreed to buy the remaining 10% owned by Sam Nazarian and his family, according to a report in the Wall Street Journal.

As part of the agreement, the hotel's 2,354 employees will continue to work at the property, but will now report to Stockbridge instead of SBE Entertainment Group, the company founded by hotelier Nazarian.

SBE no longer will collect management fees from the hotel, though it will continue to receive licensing fees for the brand. In addition, the 1,620-room hotel will remain an SLS hotel through a franchise agreement with SBE.

“Converting SBE's current management agreement into a license agreement benefits all parties involved—our valued guests and employees, SBE and Stockbridge,” said Terry Fancher, Stockbridge's executive managing director, in a statement to The Journal. It “will give the SLS Las Vegas flexibility to introduce new brands or restaurants,” he noted.

Since it opened in 2014, the SLS Las Vegas has struggled financially, due in part to its isolated location on the Las Vegas Strip and with limited casino business, the article says. The owners reported a net loss of nearly $84 million during the first six months of 2015, according to a regulatory filing.

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