A consortium led by the Kuwait-based IFA Hotels and Resorts has secured financing worth $240m to acquire the New York-based Yotel from its developer.
The financing of Yotel, Yo Sushi’s pod hotel concept, was led by the US-based Atrium Holding Company with co funding from the investment firm Centerbridge Partners, IFA Hotels and Resorts said in a statement.
IFA Hotels and Resorts is the majority shareholder in Yotel.
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The acquisition of the property from Related Company happened simultaneously with the financing, bringing the total value of the transaction to $315m, said IFA Hotels and Resorts.
The 669-room Manhattan hotel, which opened to guests on June 3, is the fourth hotel in the Yotel portfolio. Other properties are in Heathrow, Gatwick and Schiphol airports.
“From a financial perspective, we anticipate significant returns on our investment in Yotel New York. From an industry perspective, we hope this transaction serves to further boost banks' and investors’ confidence that there are still strategic opportunities available in the hospitality market,” Talal Jassim Al-Bahar, vice chairman of IFA HR, said in a statement.
IFA announced in December last year that it secured $115m in funding to complete its Fairmont Palm Jumeirah hotel project in Dubai.
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