John Russell is writing a new chapter in his long career in the hotel industry. He and a team of other American lodging veterans are partnering with Auromatrix, a 20-year-old Indian hospitality and technology company, to form Advaya Hospitality. The new firm will create several lifestyle brands that it will develop, franchise and build, as well as acquire existing or under-development properties for conversion.

While Russell is stepping down as CEO of NYLO Hotels to lead Advaya in the U.S., he is still a partner in and retains interest in the fledgling three-property chain of lifestyle hotels he launched in 2005. Also joining Russell in the new venture as principals are former NYLO executives Chris Jones (he’s chief development officer at Advaya) and David Klein (chief administrative officer and general counsel). Fourth principal is David Young, director of global real estate and development.

The Advaya principals in the U.S., from left: David Klein, general counsel and chief administrative officer; John Russell, CEO; Chris Jones, chief development officer; and David Young, chief real estate services and development officer.

“I’m still bullish on NYLO,” says Russell, “and I believe once the economy comes back and travel rebounds, it will reemerge as a viable brand.”

According to Russell, the owners of Auromatrix originally sought to either buy bankrupt Lehman Brothers’ interest in NYLO or gain development rights to take the brand to India, Thailand and China. Instead, the new venture was hatched, which Russell says has three goals. One is to develop a new four-star lifestyle brand and a three-star select-service chain, both designed to grow globally. The company will reveal further details about the brands in January at the Americas Lodging Investment Summit in San Diego.

Secondly, Russell and his team will create a fund of $100 million or more to buy strategic assets in major gateway cities, either existing properties or ones under development that have stalled.

“We plan to develop a prototype hotel as a model for future development, but for now the easiest thing to do is grab the low-hanging fruit,” says Russell. “There are a number of projects designed to be lifestyle hotels that haven’t been able to proceed. We’ll also look to convert some operating properties that aren’t necessarily in distress, but which make sense for our concept and our growth goals.”

He cites New York, Miami and Phoenix in the U.S. and Hong Kong and Singapore as target markets to find troubled hotel projects under development and suitable for conversion.

“The new venture will also create a global hospitality platform for (Auromatrix’s) related businesses,” says Russell. That portfolio includes Sparsa Resort, a chain of eco-sensitive properties in India and the subcontinent; Urbanedge Hotels, which has two Alofts open in India and three more on the way; and Hospitality Furniture Collection, a California-based furniture, fixtures and equipment firm. “A common thread among the partners is our desire to create a global company offering related product and services. This partnership will fulfill that mission.”