Yotel to get massive investment

Yotel, Starwood Capital, invest, brand, inexpensive, rooms, Boston, Singapore, New York, capital, Barry Sternlicht

Starwood Capital pumps US$250m into affordable hotels
A fund affiliated with the private investment firm Starwood Capital Group will invest US$250 million in Yotel, a hotel company known for affordable rooms and innovation, and buy a 30% stake in the company.
The partnership comes as Yotel celebrates its 10th anniversary, after a year that saw such openings as the Yotel Boston, Yotel San Francisco and Yotel Singapore, which will open on October 1 to become the brand’s first hotel in Asia.
The investment is expected to further enable Yotel’s worldwide expansion, with a specific focus on Europe, North America and Asia.
At the point of the announcement, Starwood Capital had already secured city-centre sites in Edinburgh, Glasgow and Amsterdam, expected to open as Yotels by 2019.
“Yotel has global appeal and can be easily scaled up with key strategic acquisitions and developments in desired city centre and airport locations,” Barry Sternlicht, chairman and CEO of Starwood Capital Group, said.
The brand is growing rapidly, added Yotel CEO Hubert Viriot, 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,” he said.
TTG Asia