Starwood invests $250m for 30% stake in Yotel

The fresh capital will enable Yotel to acquire land and buildings for the development of new hotels, with a particular focus on the European, North American and Asian markets. The business recently secured city centre sites in Edinburgh, Glasgow and Amsterdam that are scheduled to open in 2019.

As part of the deal, Starwood managing director Cody Bradshaw and senior vice-president Sarah Broughton will take seats on the Yotel board of directors.

Following the transaction, existing investors Jassim Al Bahar Group, IFA Hotels & Resorts, United Investment Portugal and Aqarat will retain a joint 65% stake in the business.

Company
Founded in 2003 and headquartered in London, Yotel is a hotel chain that offers accommodation, and co-working, event and fitness facilities in city centres and airports. The company currently has six locations with a seventh hotel in Singapore opening on 1 October and a San Francisco site following shortly thereafter. In total, it has 15 sites at various stages of development.

People
Starwood Capital Group – Barry Sternlicht (chairperson, CEO); Sarah Broughton (senior vice-president); Cody Bradshaw (managing director).
Yotel – Hubert Viriot (CEO); Talal Al Bahar (chairperson).

Advisers
Company – Bank of America Merrill Lynch (corporate finance).

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• Topics
• Expansion
• UK / Ireland
• Consumer
• United Kingdom