A Consortium led by IFA Hotels & Resorts and Kuwait Real Estate Co. Closes US$315 Million Deal for Largest Hotel to Open in NYC This YearBy Ifa Hotels Resorts, PRNE
Sunday, June 5, 2011
DUBAI, UAE, June 6, 2011 -
- YOTEL Transaction Marks the Second Major Funding Deal for IFA HR in 6
International developer IFA Hotels & Resorts (IFA HR) announced today
that the Consortium comprising IFA HR, Kuwait Real Estate Company (KREC) and
United Investments Portugal (UIP) has simultaneously closed a financing and
acquisition deal valued at US$315 million for its YOTEL New York property.
Talal Jassim Al-Bahar, Vice Chairman and CEO of IFA HR stated: "This is
the second funding transaction we have closed in the last six months.
Securing these deals - both with foreign lenders - goes to show that despite
tough market conditions, the right project in the right location with the
right sponsor will attract the necessary capital."
The financing for YOTEL, worth US$240 million, was led by Atrium Holding
Company, a private investment vehicle based in the United States, with
co-funding by Centerbridge Partners, L.P., an investment firm. The
acquisition of the property from Related Company, the overall project
developer, happened simultaneously with the financing - bringing the total
value of the transaction to US$315 million. The deal marks the latest major
contract linking GCC-based investors to the Big Apple with Fosterlane
Management Company, an arm of the Kuwait Investment Authority, purchasing the
former Morgan Stanley headquarters just last month.
"We are pleased with our investment in YOTEL. This comes as a part of
KREC's strategy to expand its investments geographically while focusing on
income-generating real estate to ensure maximum profit for both the company
and its shareholders" said Ibrahim Saleh Al-Therban, Vice Chairman & Managing
Director of Kuwait Real Estate Company.
The 669-room YOTEL welcomed its first guests on June 3rd and is the
largest hotel opening in the city this year. Part of Related Company's 1.2
million square foot, 60-storey LEED-Silver complex, YOTEL has the benefit of
an enviable address at West 42nd Street and 10th Avenue in Times Square.
For IFA HR, the opening of YOTEL New York marks a major milestone in its
investment in the brand. As the first site outside of an airport and the
largest YOTEL by far, its design will act as a blueprint for future city
Joe Sita, President of IFA Hotel Investments, which is the appointed
Asset Manager of the YOTEL NYC property, added: "We believe that YOTEL New
York represents the future of the hotel industry and we have found
experienced, flexible and creative hotel investors who see the same potential
for its tremendous success that we do. Everything about this hotel, from its
LEED-certified engineering and ergonomic workstations to the way luggage
stores perfectly under the bed has been painstakingly designed with our
guests' convenience and comfort in mind. It is the pinnacle of affordable
Guests arriving at YOTEL New York will check-in at airline style kiosks
and find everything a luxury hotel can offer ingeniously designed in less
than 200 sqft. Premium cabins are equipped with a space-saving motorised
moving bed; monsoon shower; Technowall with TV, music and power services; a
workstation and free super-strength Wi-Fi. Adding to the luxury, YOTEL'S 18
First Class Cabins and 3 VIP 2-Cabin Suites offer private outdoor terraces
and hot tubs. All guests enjoy a complimentary breakfast during their stay
and access to New York's largest outdoor hotel space.
Al-Bahar concluded: "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 - YOTEL is certainly one of them."
About IFA Hotels & Resorts
IFA HR is a leader in the development of mixed-use hotel and residential
resort projects throughout the Middle East, Europe, Africa, the Indian Ocean,
Asia and North America.
Listed on the Kuwait Stock Exchange, with a market capitalisation of US$1
billion, and also on the Johannesburg Stock Exchange, IFA Hotels & Resorts'
main shareholder is Kuwait based International Financial Advisors (IFA).
With a proven track record of delivering integrated resorts through
international hotel brands, IFA HR is one of the few global real estate
developers that have demonstrated the ability to sell, develop and asset
manage the full range of real estate vacation products to an international
About YOTEL NYC
YOTEL New York was designed in collaboration by The Rockwell Group and
Softroom. Bookings can now be made on www.yotel.com for stays from 15
June, with rates from just US$149. Friends of YOTEL signing up to
facebook.com/YOTELHQ and/or following them on twitter @YOTELHQ can look
forward to additional special offers. A 3D walkthrough of the hotel is
available at www.youtube.com/yotel.
About Atrium Holding Company
Atrium is a private investment vehicle based in Scottsdale, Arizona,
specializing in opportunistic investments primarily in the real estate and
hospitality industries. Atrium is an active acquirer and originator of both
senior and junior loans secured by hotels and, through its affiliates, is one
of the largest private owners of hotels in the United States, operated
primarily under the Embassy Suites, Marriott, Renaissance, and Hilton brand
About Centerbridge Partners
Centerbridge Partners, L.P. is a private investment firm based in New
York City and currently has approximately $17 billion in capital under
management. The firm focuses on private equity and credit investments. The
firm is dedicated to partnering with world-class management teams across
targeted industry sectors to help companies achieve their operating and
YOTEL was created by YO! founder Simon Woodroffe and YOTEL CEO Gerard
Greene. The idea was conceived by Simon after he was upgraded to first class
on a flight. He decided to translate the language of luxury airline travel
and Japanese capsule hotels into a small but luxurious cabin. YOTEL launched
as a revolutionary hotel concept in the summer of 2007, with its first
location inside London's Gatwick South terminal.
In December 2007, the brand opened its second airport location inside
London's Heathrow Airport Terminal 4, followed by its third location in the
airside transit area at Schiphol Airport, Amsterdam in September of 2008.
Supported by IFA Hotels and Resorts, YOTEL's CEO, Gerard Greene, leads an
experienced executive team bringing together expertise from the hotel, travel
and leisure industries across the private and public sectors.
You can download the images here:
For more details, please contact: Samantha McBride Corporate Communications Manager IFA Hotels & Resorts Samantha@ifahotelsresorts.com +971-50-711-6209 Lara Bogdanovic BPG Public Relations T +971-4-295-3456 firstname.lastname@example.org
Tags: Dubai, Ifa Hotels & Resorts, June 6, Middle East, uae