Starwood takes 30% stake in Yotel
Starwood Capital is to take a 30% stake in affordable luxury hotel brand Yotel for £185m.
A fund linked to Starwood has made the investment to facilitate Yotel's expansion. Starwood is believed to have already secured sites in Edinburgh, Glasgow and Amsterdam which are due to open as Yotels by 2019.
Yotel currently operates in transport hubs in the UK, including Gatwick and Heathrow airports.
Starwood Capital Group chairman and chief executive Barry Sternlicht said further airport and city centre locations would be sought for Yotel.
He added: "This strategic partnership and investment highlights Starwood's longstanding passion and commitment to invest in innovative hospitality platforms. 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."
Starwood's Cody Bradshaw, managing director and head of European hotels, and senior vice president Sarah Broughton will join the Yotel board of directors as part of the deal.
Yotel chairman Talal Al Bahar said: "Starwood Capital Group's investment validates the company's strategy, provides strength and stability at a critical expansion stage and opens up new horizons for Yotel to become the leading affordable luxury hotel brand."
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