EU/US: A circa €500 million debt restructuring for Generator Group, a lifestyle hospitality platform which owns, operates and develops assets across Europe and North America, has been completed by Queensgate Investments. Generator Group consists of 19 hotels with a total of 3,194 rooms in 17 gateway cities across 10 countries. 17 of these properties are fully owned, and all are independently branded and operated by an integrated hotel management team.
Apollo Global Management provided nearly €100 million in secured additional financing in support of the restructuring.
Jason Kow, CEO of Queensgate Investments, said: “Queensgate Investments is proud to have completed the restructure of the largest multi-jurisdictional financings during the Covid pandemic to support one of the most exciting asset-backed hospitality platforms on the street.With the Millennial and Generator Z customer base, we are confident of a rapid and resilient recovery once travel restrictions are lifted.”
Skardon Baker, senior partner of Apollo, said: “This transaction showcased the breadth of Apollo’s expertise with respect to offering well-structured, asset backed capital solutions for complex recapitalisation and restructuring transactions. We were pleased to provide Queensgate with a creative financing solution for a diverse portfolio of hospitality assets.”
Ivo Kolev, partner of Apollo, added: “We are pleased to have worked with Generator’s sponsor, creditors and management team to ensure an appropriate capital base addressing the operational and earnings dislocation of the current Covid-19 pandemic and look forward to working with the company as it goes through this challenging operating environment.”
Queensgate Investments advises and manages around £3 billion worth of assets through the suite of the company’s funds. It acquired Freehand Hotels from Sydell Group for around £400 million in 2019.
Apollo is a global investment manager with approximately $455 billion of assets under management in credit, private equity and real assets funds (as of Dec 31 2020).
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