Patron sparks EUR 450m Generator Hostels sale

Annual Review 2017-2018

June 2018

With the luxury hotel sector facing challenges, the millennial-driven trend for chic, yet lower cost, hotels and hostels continues.

Generator Hostels owns 14 predominantly freehold assets (12 operational and two under development), totalling 8,639 beds, located in Amsterdam, Barcelona, Berlin, Copenhagen, Dublin, Hamburg, London, Madrid, Miami, Paris, Rome, Stockholm
and Venice.

Last year, Patron Capital, which has owned Generator since 2007, agreed to a EUR 450m sale of the company to Queensgate Investments, a private equity real estate fund manager.

Keith Breslauer, Managing Director of Patron, said, “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. We are very pleased to have sold Generator to Queensgate and are confident that the business will continue to grow and thrive under their stewardship.”

A multijurisdictional CMS team from the UK, France, Germany and the Netherlands advised long-term client Patron Capital on the deal. CMS London partner Louise Wallace, who led the deal, said, “The sale represented an excellent exit opportunity for Patron after a decade of growing the business.

Investors like the strong cash flows associated with the hostels sector. Our private equity expertise, combined with our market-leading position in the hotel and leisure market across Europe, makes us a natural choice for deals of this type.
Louise Wallace, Partner, CMS London

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