Starwood Capital Group reached an agreement to acquire 30%
of mini-suites specialist Yotel for $250 million.
Starwood Capital's investment will be used to expand the
brand. Yotel operates four airport properties and three urban hotels, including
one that opened in Boston earlier this year.
"Yotel is an exciting brand focused on technology,
smart design and a distinct guest experience at an affordable price, which is
the right strategy amid the current wave of digital disruption," said Starwood
Capital CEO Barry Sternlicht. "Yotel has global appeal and can be easily
scaled up with key strategic acquisitions and developments in desired city
center and airport locations."
Known for its futuristic design scheme, Yotel features small
guestrooms with space-saving beds that mechanically turn into couches with a
push of a button.
Yotel is slated to open hotels in San Francisco and
Singapore later this year, and in Edinburgh, Glasgow and Amsterdam by 2019.
Starwood Capital continues to invest in a variety of lodging
brands. The company developed the 1 Hotels eco-luxe chainlet that has outlets
in Miami and New York and will add a property in West Hollywood, Calif., next
Starwood last year also relaunched U.K.'s Principal brand
out of what was previously known as PH Hotels. That group specializes in
updating "grand dame" city hotels.