Queensgate offloads European hospitality platform to Brookfield

Private equity firm Queensgate Investments is selling its European Generator Hostels lifestyle hospitality business to US peer Brookfield Asset Management for €776 mln.

Generator Group, Amsterdam

Queensgate purchased Generator in 2017 for €440 mln and significantly expanded the brand from 12 hostels and 1,894 rooms to 21 properties with 3,925 rooms. The brand targets young travellers with centrally located, stylish accommodations and affordable shared rooms.
This sale encompasses 15 European Generator properties with 2,749 rooms.
Jason Kow, CEO of Queensgate Investment, commented, “Queensgate is proud to have acquired Generator strategically for €440 mln, to have transformed the brand, earnings, and asset base, and to successfully exit the European arm to Brookfield at €776 mln. We are proud of Generator’s journey and look forward to watching its continued success under Brookfield’s ownership.”
Morgan Stanley served as the exclusive financial advisor to Queensgate Investment on the sale. Queensgate also received legal advice from Brown Rudnick and financial advice from EY. Brookfield’s advisors included Kirkland & Ellis and DLA Piper for legal matters, and KPMG for financial matters.
Brookfield's investments in the European hotel sector include the expansion of its Edyn apartment hotels, the 2021 acquisition of Spanish hospitality group Selenta, and ownership of UK-based Center Parcs.
Queensgate Investments manages approximately £3 bn (€3.5 bn) in assets across Europe, the UK, and the US. Generator hostels and budget-friendly boutique hotels are situated in prime city-centre locations, including London, Barcelona, and Berlin. Queensgate will retain Generator's US operations.