Yotel first Select by Hilton brand

MCLEAN, Virginia, and LONDON – The bolt-on formula is at work again as Hilton has made a franchise agreement with the tech-forward, 23-unit Yotel brand to become the first brand in its newly established Select by Hilton network.

Yotel, with its quirky “cabin’ guestrooms, will continue to independently manage and license its brand at 23 hotels across 10 countries, with a stated goal of more than tripling its portfolio in the coming years.

Brands that join Select by Hilton will retain their own identity and brand management while they connect to the Hilton Honors loyalty, distribution and technology platforms.

Yotel’s relationship with Hilton allows us to expand our reach while staying true to who we are. What changes for Yotel is access – not identity – in a capital-light, and scalable way.

Phil Andreopoulos

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Hilton said the deal expands its network in the lifestyle space in a manner consistent with its proven asset-light model.

Launched in London in 2007, Yotel can be found in gateway markets such as New York, Tokyo, Amsterdam, Glasgow and Singapore.

Yotel has 24 three divisions — a majority in its Yotel brand, five in its Yotelair brand and three in its Yotelpad brand.

“The addition of Yotel to Hilton’s network is the latest example of our commitment to capital efficient growth through a relationship that is both complementary to our existing brand portfolio and offers guests thoughtfully designed, sleek new ways to stay with Hilton in key urban locations around the world,” said Christian Charnaux, executive vice president and chief development officer, Hilton. “This agreement further strengthens our network effect by connecting a beloved independent brand like Yotel into the powerful Hilton Honors network and commercial distribution system, while preserving what makes the brand unique.”

Yotel CEO Phil Andreopoulos added, “Hilton brings unmatched global distribution and loyalty scale to our brand and business. Yotel’s relationship with Hilton allows us to expand our reach while staying true to who we are. What changes for Yotel is access – not identity – in a capital-light, and scalable way.”

Last September, Yotel named former Marriott International Chief Commercial Officer for EMEA Andreopoulos as CEO to direct plans to double its global hotel portfolio to 15,000 rooms by 2030.

Kuwait City-based Al-Bahar Group increased its stake in Yotel from 60% to more than 95% last April. A controlled affiliate of Starwood Capital previously owned that stake.