Yotel enters franchise agreement with Hilton

Yotel has signed a franchise agreement with Hilton that will see the lifestyle hotel group joining the American multinational’s newly launched Select by Hilton portfolio.

Under the agreement, Yotel will continue to independently manage and licence its brand at 23 hotels across 10 countries amid ambitions to triple its portfolio in the coming years.  

The signing also marks the creation of Select by Hilton, aimed at high-performing, established hotel brands that will retain their autonomy while also becoming part of the Hilton Honors loyalty programme.  

Yotel was launched in London in 2007 and has since expanded across cities such as New York, Tokyo, Amsterdam, Glasgow and Singapore.

In 2018, the group created Yotelpad, its aparthotel division, which launched in the US before opening its first European property in London’s Stratford in 2024.

Christian Charnaux, executive vice-president and chief development officer at Hilton, said: “The addition of Yotel to Hilton’s network is the latest example of our commitment to capital-efficient growth through a relationship that is both complementary to our existing brand portfolio and offers guests thoughtfully designed, sleek new ways to stay with Hilton in key urban locations around the world.

“This agreement further strengthens our network effect by connecting a beloved independent brand like Yotel into the powerful Hilton Honors network and commercial distribution system, while preserving what makes the brand unique.”  

Phil Andreopoulos, chief executive officer at Yotel, added: “Hilton brings unmatched global distribution and loyalty scale to our brand and business. Yotel’s relationship with Hilton allows us to expand our reach while staying true to who we are. What changes for Yotel is access – not identity – in a capital-light, and scalable way.”

The first Yotel hotels are expected to be available for booking through Hilton channels later this year.

Yotel’s major shareholders include the Talal Jassim Al-Bahar Group, United Investment Portugal and Kuwait Real Estate Company (AQARAT).

Yotel was originally created by YO! founder Simon Woodroffe, who was inspired by first-class plane travel to create compact and design-led rooms.

The agreement comes after Hilton took a bet on the lifestyle segment with the acquisition of Graduate Hotels and a majority controlling interest in Sydell Group, which owns the NoMad hotels brand, in 2024.