Starwood Capital selling again with Yotel deal

EDINBURGH, Scotland - On the heels of selling the 1 Hotel Central Park to Host Hotels & Resorts for $265 million, Starwood Capital Group has sold the Yotel in Edinburgh, Scotland, to U.K. PE firm Millemont Capital Partners for an undisclosed price.

Located in Edinburgh’s New Town, the 276-room hotel opened in 2019, having been converted from an office to a hotel by Starwood Capital. As part of the acquisition, Millemont has exercised a pre-existing right to convert the Hotel Management Agreement with Yotel to a franchise and has appointed Troo Hospitality to operate the property.

“The investment marks another strategic acquisition by Millemont and our fifth hotel transaction since 2022,” said Millemont CEO and Co-Founder Ashley Shaw. “Edinburgh is one of the best-performing hotel markets in Europe, and we are delighted to increase our presence in this thriving market. This acquisition allows us to continue the growth of our hotel portfolio with one of the largest hotels in the city.”

Shaw said Millemont plans to work closely with Troo Hospitality to continue to grow the operational performance of the hotel and capitalize on Edinburgh’s strong market fundamentals.

In 2017, Starwood Capital Group committed to making a $250 million strategic investment in Yotel, acquiring a 30% stake in the company and investing in real estate acquisitions for new build, hotel conversion and adaptive reuse properties for the brand.