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Hotel chain Yotel has secured a $250m (£186m) investment from Starwood Capital Group for a 30% stake in the company.
The funds will be invested into real estate acquisitions for new builds, hotel conversions and adaptive reuse properties as Yotel sets to expand on an international scale, with specific focus on Europe, North America and Asia.
It also will help Yotel strengthen its brand identity and enhance its innovative guest experience. Starwood have already secured city centre sites in Edinburgh, Glasgow and Amsterdam which are expected to open as Yotels by 2019.
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. This will be 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.
Barry Sternlicht, chairman and CEO of Starwood Capital Group, said: “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.
“[The company] has global appeal and can be easily scaled up with key strategic acquisitions and developments in desired city centre and airport locations.”
Hubert Viriot, CEO of Yotel, added: “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.”
