Real estate private equity firm Queensgate Investments has completed its acquisition of the 14-strong portfolio of Generator Hostels from Patron Capital for around £380m.
The company intends to own the group for the long term, improve the customer experience and invest more than £250m in growing the portfolio with a particular focus on moving into the US.
Generator has 12 hostels open and two under development, comprising a total of 8,639 beds in London, Paris, Copenhagen, Amsterdam, Miami, Dublin, Hamburg, Barcelona, Berlin Mitte, Stockholm, Madrid, Venice, Berlin Prenzlauer Berg and Rome.
The company, which has an annual turnover of more than £59m, targets millennial customers with its city centre properties, offering design-led interiors, a safe environment and shared social spaces.
Queensgate Investments has appointed Alastair Thomann, previously chief executive of Penta Hotels, as chief executive and Andre Guettouche, from senior vice-president of Penta Hotels, as chief operating officer. An interim board has been appointed until the arrival of Thomann and Guettouche.
Fredrik Korallus, the ousted chief executive, was appointed to the role in May 2015, having previously spent just over two years as chief executive of the Hotel Collection.
Queensgate Investments is a partnership between the Kow Family, the LJ Partnership and the Peterson Group. In December 2015 it acquired the 906-bedroom Kensington Forum hotel, the fifth-largest hotel in the UK, and last summer sold its interest in the 488-bedroom InterContinental Hotel, Conference Centre and Residences at the O2 Arena.
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