Real estate investors such as private equity firms and large funds should consult their hotel real estate advisor about Yotel returns-on-investment and upside on this new hotel called brand. “The Yotel New York” lodging property is a product of brand founder, Simon Woodroffe and Gerard Greene. We like this particular hotel product and believe the short and long term ROI estimates are worth a look. Woodroffe is the British founder of the automated sushi restaurant chain named “Yo Sushi” that started in 1997. He is also a motivational speaker and is author of a book with a similar name. His “Yo Company” includes several other namesake brands as well. Investors and their hospitality consultants can read the full press release here about The Yotel opening in New York this year. Here are some highlights of the new brand: Simple 170 sq. ft. (16 sqm) contemporary rooms insired by 1st class airline cabins Self-service kiosks for guest check-in Yobot – the revolutionary robotic arm that takes and stores luggage Beds that convert with a flick of a switch to a sofa Complimentary W-Fi and local telephone calls Easy and quick to clean rooms for housekeepers which results in lower costs Galleys on each floor with coffee and snacks (not in the rooms to add to cleaning costs) Japanese inspired restaurant and event space that convert into different floor plans City wide average room rates (ADR) projected at $200 to $300 per night Expected overall profitability due to product and operational efficiency before 180 days. The full biography about Woodroffee and his brands can viewed here if you are a hotel real estate advisor or investor group. Follow this link for other articles related to hotel management and hotels investments in prior blogs.
