Yotel launches fund to drive US expansion

George Sell George Sell Uploaded 06 June 2012

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US: Yotel has teamed up IFA Hotels & Resorts, Kuwait Real Estate Co. and The John Buck Co.to raise a US$250 million discretionary private equity fund.

The war chest will be used for acquiring and developing more than US$650 million worth of Yotel hotels in North America over the next three to five years.

Yotel and The John Buck Co. will "jointly identify, acquire, develop and redevelop Yotel properties in select major U.S. metropolitan cities, including projects currently being reviewed in Boston and Chicago".

Yotel, the self-styled "most radical hotel in the world," says the fund will:
• Acquire existing development sites and/or condominium interests in mixed-use development projects
• Acquire non-hotel buildings that can be converted to Yotel hotel properties
• Acquire select existing hotels that can be converted to Yotel hotel properties

The partnership anticipates the fund will close in early 2013 and is actively seeking investment opportunities throughout North America.

Yotel CEO Gerard Greene said: "Introducing the American market to the Yotel brand was a key focus in 2011 with the opening of our 669-cabin Yotel in New York, which provides affordable luxury and is a solution to expensive and boring hotels. In 2012 we have expanded this goal and are truly honored to have the opportunity to partner with one of the most well respected developers, investors and real estate owners in the world. The formation of a dedicated real estate fund with The John Buck Co. is a pivotal step in making Yotel a household name throughout North America."

www.yotel.com

06/06/12

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