Yotel, the lodging brand with three pod-style hotels at European airports and one in New York City, has brought in $250 million in equity funding.
The money will be used to develop $650 million worth of North American hotels within the next five years.
Yotel worked with Kuwait-based IFA Hotels & Resorts, Kuwait Real Estate Co. and John Buck Co. to raise the private-equity funds.
IFA provided $315 million in debt and equity financing for the Yotel New York, which opened last year.
Yotel says it is targeting existing hotels, condominiums and other urban structures for conversions. Yotel didn’t say how many hotels it planned on opening with the funds.
Yotel opened its first properties at London’s Heathrow and Gatwick airports in 2007, making pods rentable by the hour to accommodate international travelers on layovers. A Yotel opened in the main terminal of Amsterdam’s Schiphol Airport in 2009.
The 669-cabin Yotel New York was the company's first non-airport property.
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