Starwood Capital Group has announced an investment into budget brand Yotel totalling £185m ($250m), which sees the company take a 30% stake in the brand.
The move will enable Yotel to acquire new buildings as the brand expands its international presence, with a focus on Europe, North America and Asia.
Starwood has already secured city centre sites in Edinburgh, Glasgow and Amsterdam, which are expected to open as Yotels by 2019.
This year Yotel celebrated its 10th anniversary, with the last 12 months signalling significant growth for the group, with openings in Boston, San Francisco and Singapore which will open on October 1 and be the brand’s debut hotel in Asia.
“This strategic partnership and investment highlights Starwood’s longstanding passion and commitment to invest in innovative hospitality platforms,” 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 centre and airport locations.”
Cody Bradshaw, managing director, head of European hotels at Starwood Capital Group and Sarah Broughton, senior vice president, Starwood Capital Group will join the Yotel board of directors, alongside representatives of the company’s major shareholders including the Al-Bahar Group, IFA Hotels & Resorts, United Investment Portugal and Kuwait Real Estate Company (AQARAT) which jointly own 65% stake in the company.
Hubert Viriot, CEO of Yotel commented: “Yotel is growing rapidly with 15 hotels currently at various stages of development. 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.”