YellowSquare and Invel form EUR 200m hotel joint venture

Jan 27, 2025

Hybrid hospitality operator YellowSquare and Invel Real Estate and have formed a joint venture to secure over 5,000 beds under management, by investing EUR 200m across Italy, Greece, Spain and Portugal.

A new investment vehicle, fully owned by Invel, will buy properties in southern Europe that will be converted into YellowSquare-managed assets. Under the deal, Invel will subscribe a capital increase in YellowSquare to become a major shareholder.

Closing is due by the end of the first quarter.

Invel, a private equity property firm focused on southern Europe, already manages 2,000 hotel rooms in the Mediterranean region through its high-end hospitality and residential operating platform. In October 2024, the company obtained a €34m loan from Italian bank Banco BPM to finance an €80m office-to – residential conversion in Rome.

YellowSquare specialises in creating hybrid hotels catering to young and international travellers. At the end of 2023, the operator recorded over 100,000 guests and €14.4m in revenues, a 37% increase year on year.

Gabriele Magotti, chief investment officer at Invel, 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.”

Fabio Coppola, co-founder and chief visionary officer at YellowSquare, added: “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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YellowSquare | STAY WYSE News 2024