NEW YORK CITY IFA Hotels & Resorts and its investment partners have closed on a financing and acquisition deal worth US$315 million to acquire its newly opened Yotel New York hotel.
IFA, Kuwait Real Estate Co. and United Investments Portugal have secured financing worth US$240 million to acquire the 669-key Yotel from its developer, Related Co. The acquisition happened simultaneously with the financing, bringing the total value of the transaction to US$315 million.
“Securing these deals—both with foreign lenders—goes to show that despite tough market conditions, the right project in the right location with the right sponsor will attract the necessary capital,” says IFA CEO Talal Jassim Al-Bahar.
The financing was led by Atrium Holding Co., with co-funding by Centerbridge Partners LP.
Yotel welcomed its first guests June 3 and is the largest hotel opening expected in New York City this year.
“We believe that Yotel New York represents the future of the hotel industry, and we have found experienced, flexible and creative hotel investors who see the same potential for its tremendous success that we do,” says Joe Sita, president of IFA Hotel Investments, which is asset-managing the property. “Everything about this hotel, from its LEED-certified engineering and ergonomic workstations to the way luggage stores perfectly under the bed, has been painstakingly designed with our guests’ convenience and comfort in mind. It is the pinnacle of affordable luxury.”