A new strategic alliance between Invel Real Estate, a leading real estate private equity firm, and YellowSquare, an innovative player in the hybrid hospitality sector, is set to reshape the accommodation landscape in Southern Europe. With a €200 million investment plan, the partnership aims to acquire, develop, and manage new properties, targeting a capacity of 5,000 beds across key destinations in Italy, Spain, Greece, and Portugal. The closing of the deal is scheduled for the end of the first quarter of 2025.
This partnership will establish a new investment vehicle owned entirely by Invel, which will focus on identifying and acquiring assets that will be transformed into hybrid properties under the YellowSquare brand. At the same time, Invel will increase its stake in YellowSquare by subscribing to a capital increase, becoming a key shareholder and strategic partner in the company.
A joint vision for Southern European growth
Invel Real Estate, known for managing over 2,000 keys across the Mediterranean, brings a wealth of experience in developing both residential and luxury hospitality projects. Gabriele Magotti, Chief Investment Officer of Invel, emphasized the strategic importance of this partnership:
“This joint venture is a milestone in our investment strategy within the hospitality sector. It enables us to identify and develop assets that cater to a growing international clientele seeking authentic and experience-driven accommodations. By combining Invel’s expertise in real estate development with YellowSquare’s operational know-how, we are creating a reference platform for hybrid hospitality in Southern Europe.”
For its part, YellowSquare has over 20 years of operational experience and has become a popular choice among young, international travelers for its unique hybrid model. With locations already thriving in Rome, Milan, and Florence, the company’s hybrid hotels—designed as modern “squares” that promote community and interaction—blend accommodation with co-working spaces, events, and cultural experiences.
Fabio Coppola, Co-founder and Chief Visionary Officer of YellowSquare, sees this partnership as a natural evolution of the company’s growth:
“Expanding YellowSquare is essential to creating a network of modern ‘squares’ where travelers and locals can connect, share experiences, and form meaningful connections. With Invel, we’ve found the perfect strategic partner who shares our goals and values. Together, we can bring our hybrid hospitality model to new cities, offering travelers more than just a place to stay—a true community hub.”
Ambitious expansion targets
The partnership’s goal of managing 5,000 beds will involve new developments and acquisitions in major Southern European cities, focusing on transforming existing assets into dynamic, hybrid properties. The upcoming expansion will include openings in key Italian cities, such as:
- Turin
- Venice
- Bologna
These cities will join the existing YellowSquare properties in Rome, Milan, and Florence, further solidifying the brand’s national presence. Additional locations in Spain, Greece, and Portugal will be announced as the partnership progresses.
Strong financial and operational backing
YellowSquare’s impressive financial growth reflects its appeal among young, experience-oriented travelers. In 2023, the company hosted more than 100,000 guests and reported total revenues of €14.4 million, a 37% increase compared to 2022, when revenues totaled €10.5 million. The company’s hybrid model demonstrated strong performance metrics, including:
- Revenue per available bed (TRevPAB): €47
- Revenue per room (TRevPAR): €198
- EBITDAR for 2023: approximately €6 million
Invel’s experience in high-value hospitality investments complements YellowSquare’s operational success, creating a powerful platform for growth. Invel’s vertically integrated platform allows it to oversee every stage of development, from acquisition to asset transformation, ensuring that new properties meet the high standards required for success in the hybrid hospitality space.
A new era of hybrid hospitality
Hybrid hospitality is emerging as a key trend in the post-pandemic travel landscape, offering travelers more than just accommodation. YellowSquare’s model, which integrates shared spaces for work, entertainment, and social interaction, caters to the growing demand for immersive travel experiences that foster community engagement.
As Magotti explained, this demand is driving the strategy behind the partnership:
“The agreement with YellowSquare was designed to meet the rising demand for hybrid hospitality solutions in key tourist destinations across Southern Europe. Together, we are creating spaces that combine tradition with innovation, offering authentic and engaging experiences that resonate with modern travelers.”
Strategic impact and vision for the Future
The €200 million investment will not only help expand YellowSquare’s presence across Europe but also support local economies and enhance the value of underutilized properties. As Coppola pointed out, the ultimate goal is to transform each property into a vibrant “square” where guests and locals alike can interact and create lasting memories.
This strategic partnership marks a significant step for Invel and YellowSquare as they position themselves as leaders in the hybrid hospitality sector. By focusing on community, cultural immersion, and sustainable growth, the venture is expected to create a lasting impact on the Southern European tourism market.