YOTEL, together with a real estate development and investment firm, has followed the opening of YOTEL's first city center hotel in New York with the announcement of a dedicated real estate fund platform focused on the expansion of the brand in North America.
YOTEL, along with long term capital partners IFA Hotels & Resorts, Kuwait Real Estate Company and The John Buck Company have partnered to raise a $250 million discretionary private equity fund with the goal of acquiring and developing more than $650 million worth of YOTEL hotels in North America over the next three to five years.
As co-general partners of the fund, YOTEL and The John Buck Company 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.
"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," said Gerard Greene, CEO of YOTEL. "In 2012 we have expanded this goal. The [new partnership] is a pivotal step in making YOTEL a household name throughout North America.”