Yotel concept to Chicago and Boston.
CHICAGO-The trendy Yotel chain, based in London, and locally based John Buck Co. have formed a partnership to raise $250 million for new hotels in North America during the next three-to-five years. The seed money will allow the acquisition and development of more than $650 million worth of Yotel hotels, the partnership said in a statement Thursday.
Yotel was created by Simon Wodroffe and Gerard Greene, and includes two hotels in London, two in Amsterdam and a recently developed hotel in New York City, at 10th Avenue and West 42nd Street. The motif is modern with a touch of Japanese, with 669 rooms, most with convertible beds and monsoon showers. John Buck, principal of the self-named firm, said in the statement that the concept allows developers to mas about 30% more keys on a site compared to other hotels.
Greene said in the statement that the New York City location, opened last year, is a solution to expensive and boring hotels. “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.”
The partnership is funded by Kuwait-based capital partners, including IFA Hotels & Resorts and the Kuwait Real Estate Co. The plan, say Yotel and Buck, is to acquire existing development sites or interest in mixed-use projects, or to acquire existing properties, hotels or not, that can be converted into a Yotel chain. Closing of the fund is expected by early next year, though the partnership is seeking opportunities immediately. Properties are currently being considered here and in Boston.