Queensgate Investments (“Queensgate”) has announced the sale of the European operations of Generator Group to private real estate funds managed by Brookfield Asset Management for EUR 776 million.

Queensgate successfully transformed the company from a regional hostel provider with 12 assets and 1,894 rooms in 2016 into a well-known hotel brand boasting 21 assets and 3,925 rooms by 2025. This evolution catered to the priorities of the Gen Z travelers who prioritize tier I city center locations, innovative lifestyle food and beverage offerings, and budget-friendly shared accommodations.

For owners, Generator has provided an attractive yield with over 50% operating margins.

Jason Kow, CEO of Queensgate Investments, said: “Queensgate takes pride in acquiring Generator for EUR 440 million, successfully enhancing its brand, earnings, and asset base, and successfully divesting the European sector to Brookfield for EUR 776 million. We are proud of Generator’s progress and eager to observe its ongoing success under Brookfield’s guidance.”

Morgan Stanley & Co. International acted as the sole financial advisor for Queensgate Investment, while Brown Rudnick LLP and EY provided advisory services to Queensgate. Kirkland & Ellis, DLA Piper, and KPMG advised Brookfield.