Yotel Receives $250 Million Investment Boost

Mini-suites specialist Yotel is receiving a $250 million strategic investment from Starwood Capital Group that will help it to continue its rapid worldwide expansion.

Starwood Capital Group, a private investment firm, will receive 30 percent stake in the company and invest in real estate acquisitions for new Yotel properties.

Yotel opened a hotel in Boston earlier this year. It is scheduled to debut hotels in San Francisco and Singapore later this year, and in Edinburgh, Glasgow and Amsterdam in 2019.

“What attracted Starwood Capital to our business is our concept and our proposed strategy to execute it,” Hubert Viriot, Yotel’s CEO, told Skift. “Hopefully, we’ll be able to expand our portfolio even more rapidly than we anticipated. We also get access to people and their expertise in growing a hotel management company.”

Yotel is known for its focus on technology and smart design, and providing a distinct guest experience at an affordable price. The company takes the essential elements of luxury hotels and adapts them into smaller, smart spaces that are ideal for developing a sense of community. They feature areas for co-working, socializing and exercising. Premiums cabins include Yotel’s adjustable SmartBed with monsoon rain showers and a Technowall with adjustable mood lighting and smart TVs, several power points and easy connectivity.

The company operates airport hotels under the Yotelair brand at Heathrow Airport (LHR) in London, Gatwick Airport (LGW) near London, Amsterdam Airport Schiphol (AMS) and Paris Charles de Gaulle Airport (CDG). It also operates hotels in New York City, Boston and Singapore. In addition to the places already mentioned, hotels are under development at Singapore Changi Airport (SIN) and in Miami, Dubai and the Clerkenwell area of London.

Starwood Capital Group focuses on global real estate, energy infrastructure, and oil and gas. The firm has raised $42 billion of equity capital since it was created in 1991 and now manages more than $54 billion in assets. The company is continuing to invest in a variety of lodging brands—it  developed the 1 Hotels eco-luxe chainlet that has outlets in Miami and New York City, and plans to add a property in West Hollywood, California, next year. It is attempting to diversify its portfolio of hospitality brands, and Yotel fits the bill.

advertisement

Smart Meetings Related Posts

Harnessing Momentum: How Marriott Is Helping Meeting Profs Lead Events Forward

Meet with Momentum Boston, the second installment of a new event series by Marriott that began this June, continued the brand’s mission to educate meeting and event planners in its redevelopment projects and to empower planners amid a booming return to meetings.