Yotel hotels to expand in the US
Yotel has teamed up with capital partners IFA Hotels & Resorts, Kuwait Real Estate and The John Buck Company to raise a $250m discretionary private equity fund to acquire and develop more than $650m worth of Yotel hotels in the US over the next three to five years.
As co-general partners of the fund, Yotel and The John Buck Company together plan to identify, acquire, develop and redevelop Yotel properties in major US metropolitan cities, including projects which are currently under review in Boston and Chicago.
According to the hotel group, the fund will gear up its hotel concept, brand and management expertise combined with The John Buck Company’s prior private equity real estate fund management experience.
Yotel CEO Gerard Greene said introducing the American market to the company’s brand was a key focus in 2011 with the opening of its 669 cabin Yotel in New York.
[quote]”In 2012 we have expanded this goal and are truly honoured to have the opportunity to partner with one of the most well respected developers, investors and real estate owners in the world,” Greene added.[/quote]
The fund is currently in discussions with potential limited partners and will use a multi-pronged strategy for investments, including acquiring non-hotel buildings and selecting existing hotels that can be converted into Yotel hotel properties.
The fund is expected to close in early 2013.