Starwood Capital Group has announced plans to make a strategic $250 million investment in Yotel and acquire a 30 percent stake in the company. The agreement also entails investment in real estate acquisitions for new builds, hotel conversions, and adaptive reuse properties as Yotel continues its global expansion. The deal will further strengthen the brand’s identity as well as its growth, particularly in Asia, Europe, and North America. Starwood has already secured central urban sites for development in Edinburgh, Glasgow, and Amsterdam—all of which are expected to open Yotel properties 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, which is the right strategy amid the current wave of digital disruption,” says Starwood Capital chairman and CEO Barry Sternlicht. “Yotel has global appeal and can be easily scaled up with key strategic acquisitions and developments in desired city center and airport locations.”
“We are delighted to announce a new institutional investor into Yotel alongside our existing shareholders,” says Yotel chairman and lead investor Talal Al-Bahar. “Starwood Capital Group’s investment validates the company’s strategy, provides strength and stability at a critical expansion stage, and opens up new horizons for Yotel to become the leading affordable luxury hotel brand.”
The deal coincides with Yotel’s 10th anniversary, a year which has so far seen hotel openings in Boston and San Francisco, and Singapore, which will open next month as Yotel’s first hotel in Asia.
