YOTEL and John Buck Company Form Partnership

Targeting $250 Million North American Equity Fund

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. June 08, 2012

June 8, 2012 - YOTEL together with The John Buck Company follows the opening of YOTEL's first city center hotel in New York with the announcement of a dedicated real estate fund platform focused on the expansion of the brand in North America.

YOTEL together with The John Buck Company follows the opening of YOTEL's first city center hotel in New York with the announcement of a dedicated real estate fund platform focused on the expansion of the brand in North America.

YOTEL, along with long term capital partners IFA Hotels & Resorts, Kuwait Real Estate Company and The John Buck Company have partnered to raise a $250 million discretionary private equity fund with the goal of acquiring and developing more than $650 million worth of YOTEL hotels in North America over the next three to five years. As co-General Partners of the Fund, YOTEL and The John Buck Company will jointly identify, acquire, develop and redevelop YOTEL properties in select major U.S. metropolitan cities including projects currently being reviewed in Boston and Chicago. The Fund will leverage YOTEL's innovative hotel concept, brand and management expertise combined with The John Buck Company's strong development reputation and prior private equity real estate fund management experience.

"Introducing the American market to the YOTEL brand was a key focus in 2011 with the opening of our 669 cabin YOTEL in New York which provides affordable luxury and is a solution to expensive and boring hotels," said Gerard Greene, CEO of YOTEL. "In 2012 we have expanded this goal and are truly honored to have the opportunity to partner with one of the most well respected developers, investors and real estate owners in the world. The formation of a dedicated real estate fund with The John Buck Company is a pivotal step in making YOTEL a household name throughout North America."

YOTEL is an extremely innovative and exciting Brand and we are truly excited to be a part of their growth strategy," said Jack Buck, Principal of The John Buck Company. "Along with our new partners in YOTEL and IFA Hotels & Resorts and Kuwait Real Estate Company, we look forward to utilizing our investment expertise and development experience as we help expand the Brand in North America. Given YOTEL's truly unique concept, strong operating margins, management team and ability to mass approximately 30% more keys on a development site vs. other hotels, it should make for a great partnership."

The Fund is currently in discussions with potential limited partners and will utilize a multi-pronged strategy for investments:

• Acquire existing development sites and/or condominium interests in mixed-use development projects
• Acquire non-hotel buildings that can be converted to YOTEL hotel properties
• Acquire select existing hotels that can be converted to YOTEL hotel properties

The partnership anticipates an official closing of the Fund in early 2013 and is immediately seeking investment opportunities throughout North America.

YOTEL was created by YO! founder Simon Woodroffe and YOTEL CEO Gerard Greene. Inspired by first class travel, they have translated the language of luxury airline travel and Japanese influence into a small but luxurious cabin. YOTEL's first city centre location 2 blocks from Times Square at 10th Avenue and West 42nd Street features 669 stylish cabins. 'Premium' cabins come with convertible beds for saving space, monsoon showers, technowall with TV and MP3/iPOD connectivity, workstation and free super strength WiFi. For the 'extra' factor there are 19 'First' cabins, some with private outdoor terraces and hot tubs and three 1,100 sqft VIP 2 cabin suites with 360 degree views, rotating king size beds and dining tables that convert to a billiard table! YOTEL New York is home to YOBOT, the world's first robotic luggage concierge, and 'FOUR' with 20,000 sqft of flexible entertainment space to include 'Dohyo' restaurant, Club Lounge surrounded by private bookable cabins, New York's largest outdoor hotel terrace and Studiyo for meeting, cinema screening and parties. YOTEL currently operates three terminal airport properties at London Heathrow, London Gatwick and Amsterdam Schiphol.