Invel Real Estate is taking a stake in hostel chain YellowSquare, forming a new partnership to invest €200m in acquiring, developing and managing properties in Southern Europe.
The partnership which aims to manage over 5,000 beds, will target cities across Italy, Spain, Greece and Portugal.
The deal also involves Invel creating a wholly-owned investment vehicle to acquire and develop assets which will then be managed as YellowSquare facilities.
Gabriele Magotti, Invel’s CIO, said: “The agreement with YellowSquare allows us to address the growing demand for hybrid hospitality solutions in South Europe’s leading tourist destinations. This joint venture marks a milestone in our investment strategy for the hospitality sector, aimed at identifying and developing assets capable of meeting the evolving needs of an international and experience-driven clientele.
“Furthermore, this partnership allows us to combine YellowSquare’s distinctive operational expertise with our real estate development capabilities, laying the foundation for a leading platform in the Southern European market. We are thrilled to embark on this journey with YellowSquare, whose strategic vision and values align closely with our own.”
Fabio Coppola, YellowSquare’s co-founder and chief visionary officer, said: “YellowSquare’s expansion represents a necessary evolution to create a modern ‘squares’ network. In order to realise that, we have partnered with Invel, with whom we strategically share our goals and values.
“Our goal has always been to create authentic links between travellers and local communities, transforming each property into a real meeting point, a ‘square’ where people can share experiences, work, have fun and feel part of a global community.
“Thanks to this partnership, we will be able to expand our network, bringing our hybrid hospitality model to new cities and creating new spaces for all guests seeking a travel experience that goes beyond a simple overnight stay.”
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