New York City-based Brookfield Asset Management has acquired the Generator Hostels’ European brand and hotels for a price of €776 million ($869 million).
The seller is London-based Queensgate Investments, which bought Generator in 2017 for approximately €450 million ($504 million) from Patron Capital in a deal that was seen as the first major acquisition and investment in the hostel niche.
The European Generator properties have a combined 2,800 rooms in Amsterdam, Berlin, Barcelona, Copenhagen, Dublin, Hamburg, London, Madrid, Paris, Rome, Stockholm and Venice.
There is no indication if branding will change.
Queensgate remains the owner of Generator’s two hotels in the U.S., which are in Miami and Washington, D.C.
Within the hotel real-estate asset class in Europe, Brookfield also has investment in Center Parcs, Edyn, Experimental Group and Selenta Group.
Across all asset classes, it has approximately €50 billion ($56 billion) of ownership in Europe.
Lauren Okada Young, managing director, real estate, said of the 15-hotel deal that Brookfield has seen “significant opportunity to further scale and enhance the business, drawing on our deep sector expertise.”
Brookfield plans to accelerate Generator’s growth through acquisitions and by striking third-party management agreements in the hostel space, according to a news release about the deal.
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