Queensgate Acquires Generator Hostels From Patron For €450M
Queensgate Investments Fund purchased design-led hostel owner and operator Generator Hostels from Patron Capital and investment partner Invesco Real Estate. The transaction, valued at €450M, is believed to be the biggest deal ever in the hostel sector. It is expected to complete in May.
Generator Hostels owns 14 predominantly freehold assets totaling 8,639 beds in London, Paris, Copenhagen, Amsterdam, Miami, Dublin, Hamburg, Barcelona, Berlin Mitte, Stockholm, Madrid, Venice, Berlin Prenzlauer Berg and Rome. With current revenues over €70M, Generator Hostels targets the fast-growing sector of Millennial customers, focusing on the best capital city addresses, design-led interiors, a safe environment 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 €300M into adding more hostel assets.
Patron managing director Keith Breslauer said Patron had expanded the business from two hostels to 14, and has redefined the hostel concept into the "design-led hospitality experience" that guests want.
Patron was advised by Lazard and CMS; Queensgate was advised by Brown Rudnick. Invesco Real Estate was represented by Freshfields.