UK: Queensgate Investments has completed the acquisition of Generator Hostels and immediately installed a new management team.
Queensgate Investments Fund II, which is managed by Queensgate Investments, a real estate private equity manager, has bought Generator from Patron Capital for around €450 million.
Queensgate Investments’ plan is “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 US”.
On completion of the transaction, it is understood Queensgate immediately asked Fredrik Korallus, chief executive since 2015, and Paul Harries, finance chief since 2014, to leave.
Queensgate has appointed Alastair Thomann as CEO and Andre Guettouche as COO. Both will join from Penta Hotels where Thomann was formerly CEO and Guettouche was SVP. An interim board has been appointeduntil Thomann and Guettouche join.
Generator Hostels owns 14 predominantly freehold assets (12 operational and two under development), totalling 8,639 beds, located in London, Paris, Copenhagen, Amsterdam, Miami, Dublin, Hamburg, Barcelona, Berlin Mitte, Stockholm, Madrid, Venice, Berlin Prenzlauer Berg and Rome.
There will be two seminar sessions focusing on the hostel and hybrid hotel market at this year’s Boutique and Lifestyle Hotel Summit in London on May 22 and 23.