Barry Sternlicht’s Starwood Capital Group has invested $250 million in YOTEL, acquiring a 30 percent stake in the micro-hotel operator.
The companies say YOTEL will use the funds to propel its international expansion plans, focusing on Europe, North America and Asia. The partners also say Starwood has already secured sites in Edinburgh, Glasglow and Amsterdam for YOTEL sites that will open by 2019.
“This strategic partnership and investment highlights Starwood’s longstanding passion and commitment to invest in innovative hospitality platforms,” says Sternlicht, Starwood’s chairman and ceo. “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.”
Adds YOTEL ceo Hubert Viriot: “We are 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.”
So far this year, YOTEL has opened locations in Boston (shown above) and San Francisco. YOTEL Singapore—the brand’s first Asian locale—is slated to open Oct. 1.