Invel Real Estate has agreed to a €65 million financing facility with UniCredit to support the growth of Fondo Yellow, an alternative investment fund focused on hybrid hospitality, fully subscribed by Invel and managed by Castello SGR.
The facility will fund the acquisition and development of more than 2,000 beds to be operated by YellowSquare across major Italian gateway cities. The financing is expected to qualify as a green loan, reflecting the platform’s ESG commitments, with a focus on urban regeneration and sustainable buildings.
The new financing marks a key milestone in the platform’s expansion and its goal of becoming a leading player in Southern European hybrid hospitality. New assets will feature sustainable design intended to create safe, connected and community-oriented environments for guests.
The financing gives Invel immediate scale in one of Europe’s tourism markets and signals support from a major financial institution for development initiatives backed by experienced sponsors and established operating platforms.
“This financing marks an important moment as we continue to scale the YellowSquare platform and represents a strong vote of confidence in our ambitions,” said Gabriele Magotti, CIO of Invel Real Estate. “We are pleased to partner with UniCredit for this next phase of growth in Italy, which also reinforces the broader strategic trajectory of the platform across key Southern European urban markets. Beyond the size of the transaction, it reflects the strength of the joint venture established in 2025 and our shared conviction in the long-term potential of hybrid hospitality as an institutional asset class.”
The deal follows the strategic joint venture between Invel and YellowSquare announced in January 2025, which established the foundation for the platform’s current growth plan across Italy. YellowSquare currently operates approximately 1,200 beds.
Founded in 2013 in Milan, Invel currently manages 3.5 billion euros of assets.