In March, London-based private equity real estate fund manager Queensgate Investments announced plans to buy hostel owner and operator Generator Hostels for €450 million.
Generator, which operates a total of 8,639 beds in London, Paris, Copenhagen among others European cities, was previously owned by Patron Capital and co-investment partner Invesco Real Estate. The operator currently has a portfolio of 12 predominantly freehold assets, and two properties are under development. Its revenues are above €70 million.
The deal appears a smart one for Queensgate when you take into account the growing appeal of hostel-style accommodations, especially to millennials.
Now, the deal has been completed, and with it, new leadership at the top.
Gone is previous Generator CEO Fredrik Korallus; in are now CEO Alastair Thomann and COO Andre Guettouche—both from German-based hotel chain Pentahotels.
Queensgate said it plans are "to own the portfolio for the long term, enhance the customer experience across all assets and to invest no less than €300 million into expanding the portfolio with additional freehold assets focused predominantly in the U.S. Currently, Generator is developing a property in Miami, which was to open this year. No word on how this deal will impact it.
In a LinkedIn post Friday afternoon, Korallus wrote:
"After two years of leading Generator through strong growth, culminating in the successful sale to Queensgate Investments for €450m I have stepped down from my role as CEO. Leading the stellar Generator team and business through to this great milestone has been pure joy and now is the right time for me to seek new challenges. Generator is disrupting the traditional hospitality industry and as their biggest fan, I will be cheering on their continued success."