Yotel, which bills itself as the “most radical hotel in the world,” has announced the creation of a dedicated real estate fund platform focused on the expansion of the brand in North America.
Yotel, IFA Hotels & Resorts, Kuwait Real Estate Co. and The John Buck Co. have partnered to raise a US$250 million discretionary private equity fund with the goal of acquiring and developing more than US$650 million worth of Yotel hotels in North America over the next three to five years. As co-general partners of the fund, Yotel and The John Buck Co. will jointly identify, acquire, develop and redevelop Yotel properties in select major U.S. metropolitan cities, including projects currently being reviewed in Boston and Chicago.
According to a news release from Yotel, the fund is currently in discussions with potential limited partners and will utilize a multi-pronged strategy for investments:
- Acquire existing development sites and/or condominium interests in mixed-use development projects
- Acquire non-hotel buildings that can be converted to Yotel hotel properties
- Acquire select existing hotels that can be converted to Yotel hotel properties
The partnership said it anticipates an official closing of the fund in early 2013 and is immediately seeking investment opportunities throughout North America.
“Introducing the American market to the Yotel brand was a key focus in 2011 with the opening of our 669-cabin Yotel in New York, which provides affordable luxury and is a solution to expensive and boring hotels,” said Yotel CEO Gerard Greene. “In 2012 we have expanded this goal and are truly honored to have the opportunity to partner with one of the most well respected developers, investors and real estate owners in the world. The formation of a dedicated real estate fund with The John Buck Co. is a pivotal step in making Yotel a household name throughout North America.”