Generator Hostels, the design-led hostel brand, is to be sold by Patron Capital to property investment company Queensgate Investments for around €450m (£393m).
Aimed at millennial customers, the business is made up of 12 freehold properties with a further two under development, comprising a total of 8,639 bedrooms in London, mainland European cities and Miami.
Queensgate Investments intends to own the portfolio for the long term and invest more than €300m (£262m) in growing the company.
Jason Kow, chief executive of Queensgate Investments, said that Generator provided "high-quality freehold assets, robust revenues, an attractive lifestyle brand, and material scalability opportunities".
Keith Breslauer, managing director of Patron, added: "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."
The Generator Hostel deal is expected to complete in May.
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