Queensgate Investments Fund has agreed to purchase design-led hostel owner and operator Generator Hostels from Patron Capital and its co-investment partner, Invesco Real Estate, for €450 million. The transaction is expected to be completed in May.
Generator Hostels owns 14 predominantly freehold assets totalling 8,639 beds spread across London, Paris, Copenhagen, Amsterdam, Miami, Dublin, Hamburg, Barcelona, Berlin Mitte, Stockholm, Madrid, Venice, Berlin Prenzlauer Berg and Rome.
Keith Breslauer, Managing Director of Patron, comments: “Generator has performed strongly under Patron’s ownership, during which time we have expanded the business significantly from just two hostels to 14, and have redefined the hostel concept into the design-led hospitality experience that today’s guests want. We are very pleased to have sold Generator to Queensgate, and are confident that the business will continue to grow and thrive under their stewardship.”
Earning current revenues of over €70m million, Generator Hostels targets the fast-growing sector of millennial customers, focusing on the best capital city addresses, design-led interiors, safe environments and, most of all, attractive shared social spaces.
Queensgate Investments intends to own the portfolio for the long term, enhance operations for customers, and invest in excess of €300 million into adding more hostel assets.
Jason Kow, CEO of Queensgate Investments, concludes: “Generator Hostels represents high-quality freehold assets, robust revenues, an attractive lifestyle brand, and material scalability opportunities. Generator Hostels plays to Queensgate’s strengths of working with incumbent management to improve the customer experience, to streamline operations and to bolt on additional assets to this impressive platform.”