Compact and bijou

Compact and bijou – Boutique Hotel News

Starwood Capital’s purchase of a 30 per cent stake in YOTEL offers further proof that the design-led, limited service value sector of the hotel industry is a red hot one right now.

The company’s ‘cabin’ rooms are small but comfortable and functional, and allow the brand to fit a significantly greater number of rooms on any given development footprint than the majority of its competitors.

This is clearly an attractive proposition to investors, and Starwood Capital joins Kuwaiti investor IFA Hotel Investments as a major shareholder in the company. The $250 million raised will go to acquiring sites for new-builds and conversions, boosting an already healthy development pipeline.

The deal also adds another string to Starwood Capital’s hospitality bow, joining the likes of the Principal lifestyle hotel brand, the 1 Hotel brand and the first Marriott Residence Inn properties in London among others.