News for the Hospitality Executive
YOTEL and The John Buck Company Form Partnership
EW YORK, June 7, 2012 -- YOTEL, considered the most radical hotel in the world, together with The John Buck Company, one of the most trusted and well respected names in real estate development and investment, follows the opening of YOTEL's first city center hotel in New York with the announcement of a dedicated real estate fund platform focused on the expansion of the brand in North America.
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 discretionary private equity fund 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 honored 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."
The Fund is currently in discussions with potential limited partners and will utilize a multi-pronged strategy for investments:
YOTEL was created by YO! founder Simon Woodroffe and YOTEL CEO Gerard Greene. Inspired by first class travel, they have translated the language of luxury airline travel and Japanese influence into a small but luxurious cabin. YOTEL's first city centre location 2 blocks from Times Square at 10th Avenue and West 42nd Street features 669 stylish cabins. 'Premium' cabins come with convertible beds for saving space, monsoon showers, technowall with TV and MP3/iPOD connectivity, workstation and free super strength WiFi. For the 'extra' factor there are 19 'First' cabins, some with private outdoor terraces and hot tubs and three 1,100 sqft VIP 2 cabin suites with 360 degree views, rotating king size beds and dining tables that convert to a billiard table! YOTEL New York is home to YOBOT, the world's first robotic luggage concierge, and 'FOUR' with 20,000 sqft of flexible entertainment space to include 'Dohyo' restaurant, Club Lounge surrounded by private bookable cabins, New York's largest outdoor hotel terrace and Studiyo for meeting, cinema screening and parties. YOTEL currently operates three terminal airport properties at London Heathrow, London Gatwick and Amsterdam Schiphol.
About IFA Hotels & Resorts
IFA Hotels & Resorts is YOTEL's largest investor and a leader in the development of mixed-use hotel and residential resort projects with over 40 projects across the Middle East, Europe, Africa, the Indian Ocean, Asia and North America. Listed on the Kuwait Stock Exchange and also on the Johannesburg Stock Exchange, IFA Hotels & Resorts' main shareholder is Kuwait based International Financial Advisors (IFA). www.ifahotelsresorts.com
About Kuwait Real Estate Company (K.S.C)
Established in 1972 as a Kuwaiti shareholding company (K.S.C), Kuwait Real Estate Company is one of the country's leading companies in its field. It was the first ever real estate company incorporated into the Kuwait Stock Exchange. Among its many achievements, the company developed the first mixed-use retail, office, and car park development in Kuwait and pioneered the Build-Operate-Transfer concept prior to any formal regulation being in place. http://www.krec-kw.com/mainEn.aspx
About The John Buck Company
The John Buck Company was established by John Buck in 1981 and has since expanded into a vertically integrated real estate services firm that focuses on high-density, urban commercial real estate. The firm has completed over $11 billion of real estate transactions and acquired, developed, or redeveloped over 40 million square feet of commercial property including office, residential, retail, mixed-use, and hotels. Over JBC's history, the company has established a proven track record in evaluating real estate opportunities from a variety of perspectives including: investor, developer, and asset manager. www.tjbc.com
Founders and IFA Hotel’s & Resorts to Open First U.S. YOTEL -
Slated to be the Largest Hotel Opening in Manhattan in 2011 with 669
Cabins / March 2010