YOTEL Transaction Marks the Second Major Funding Deal for IFA HR in 6
DUBAI, UAE, June 6, 2011 /CNW/ - 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
"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
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 centre locations.
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 luxury."
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
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 audience. http://www.ifahotelsresorts.com
About YOTEL NYC
YOTEL New York was designed in collaboration by The Rockwell Group and
Softroom. Bookings can now be made on http://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
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 names.
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 financial objectives.
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
You can download the images here:
SOURCE IFA Hotels
For further information:
Corporate Communications Manager IFA
Hotels & Resorts
BPG Public Relations