YOTEL has announced that a fund affiliated with Starwood Capital Group, a leading global private investment firm, has committed to making a strategic investment of $250 million in the company.
The deal includes acquiring a 30 percent stake in the company and investing in new real estate properties as YOTEL expands internationally. Starwood Capital’s investment in and partnership with the company will further enable YOTEL’s expansion with specific focus on Europe, North America, and Asia, YOTEL said.
In fact, Starwood Capital has already secured property in Edinburgh, Glasgow, and Amsterdam, which are expected to open as YOTELs by 2019.
"This strategic partnership and investment highlights Starwood's longstanding passion and commitment to invest in innovative hospitality platforms. YOTEL is an exciting brand focused on technology, smart design and a distinct guest experience at an affordable price,” said Barry Sternlicht, chairman and CEO of Starwood Capital Group. "YOTEL has global appeal and can be easily scaled up with key strategic acquisitions and developments in desired city center and airport locations."
With the new partnership, two new members will be added to YOTEL’s board of directors- Cody Bradshaw, Managing Director, Head of European Hotels at Starwood Capital Group and Sarah Broughton, Senior Vice President, Starwood Capital Group.
Joining alongside Bradshaw and Broughton will be representatives of the company’s major shareholders, including the Jassim Al Bahar Group, IFA Hotels and Resorts, United Investment Portugal, and Aqarat.
Hubert Viriot, the CEO of YOTEL, said of the partnership, “We look forward to leveraging Starwood's investment, design, operational and technological expertise to expand our platform, attract talent and enter additional markets whilst continuing to work closely with our existing partners and fostering new relationships as we take our brand to the next level.”
The partnership with Starwood Capital Group comes as YOTEL celebrates its 10th anniversary. The company has seen growth in the past year with the openings of YOTEL Boston and YOTEL San Francisco.
For more on YOTEL, visit www.yotel.com/en.