Yotel Is Getting $250 Million From Starwood Capital to Fuel Expansion
Skift Take
It's a smart move on Barry Sternlicht's part to diversify his portfolio of hotel brands, especially when pod-style hotels are growing in popularity and interest among developers and consumers alike.
Yotel, the hotel company known for its small rooms and high-tech guest experience, is getting a boost from Barry Sternlicht's Starwood Capital Group to the tune of $250 million.
Starwood Capital, the private investment firm, is investing $250 million in Yotel and acquiring a 30 percent stake in the company in the process to help Yotel grow and expand internationally.
Currently, Yotel operates four airport hotels under its YotelAir brand in Europe, and two city hotels in New York and Boston. It has several hotels under development in Asia, Europe, the Middle East, and the U.S., and Starwood is assisting Yotel in opening hotels in Edinburgh, Glasgow, and Amsterdam.
"This strategic partnership and investment highlights Starwood's longstanding passion and commitment to invest in innovative hospitality platforms," Starwood Capital Group CEO and chairman Barry Sternlicht said in a statement. "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. Yotel has global appeal and can be easily scaled up with key strategic acqui
