Patron, Invesco sell hostels business for €450m
Patron Capital and Invesco Real Estate have agreed to sell hostel owner and operator Generator Hostels to Queensgate Investments for €450 million ($480 million). It is considered one of the largest deals ever in the hostel sector.
Queensgate will acquire the portfolio on behalf of Queensgate Investments Fund II. Queensgate intends to own the portfolio for the long term, enhance operations for customers and invest in excess of €300 million ($320 million) into adding more hostel assets.
Generator Hostels, which was held in Patron Capital’s Fund III, owns 14 predominantly freehold assets (12 operational and two under development), totaling 8,639 beds in Amsterdam, Barcelona, Berlin Mitte, Berlin Prenzlauer Berg Copenhagen, Dublin, Hamburg, London, Madrid, Miami, Paris, Rome, Stockholm and Venice.
Generator Hostels targets the fast-growing sector of millennial customers, focusing on the best capital city addresses, design-led interiors, a safe environment and,