YOTEL, along with long term capital partners IFA Hotels & Resorts, Kuwait Real Estate Company and The John Buck Company have partnered to raise a $250 million in private equity with the goal of acquiring and developing more than $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 Company 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.
The Fund will leverage YOTEL’s innovative hotel concept, brand and management expertise combined with The John Buck Company’s strong development reputation and prior private equity real estate fund management experience.
“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 Gerard Greene, CEO of YOTEL.
“In 2012 we have expanded this goal and are truly honoured 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 Company is a pivotal step in making YOTEL a household name throughout North America.”
YOTEL is an extremely innovative and exciting Brand and we are truly excited to be a part of their growth strategy,” said Jack Buck, Principal of The John Buck Company.
“Along with our new partners in YOTEL and IFA Hotels & Resorts and Kuwait Real Estate Company, we look forward to utilizing our investment expertise and development experience as we help expand the Brand in North America.
Given YOTEL’s truly unique concept, strong operating margins, management team and ability to mass approximately 30% more keys on a development site vs. other hotels, it should make for a great partnership.”