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Queensgate is selling Generator Hostels for €1,5 B

According to rumors the owner of Generator Hostels, Queensgate, would have divested the company for a total amount of approx. 1.5 billion EUR. The chain of hostels counts accommodation in several world destinations including London, Paris, New York, Miami, Rome and Venice. According to a source, the group would have started the sale procedure in 2020 under supervision by investment bank Goldman Sachs, which was then discontinued from the pandemic. Sales expectations were already at the time they were around 1 billion. Recall that Queensgate had taken over Generator Hostels by Patron Capital Advisers as early as 05/2017 for approx. USD 470 million (at the time about EUR 450 million). In Italy Generator Hostel is active with two structures a Rome (since 2016) from 67 keys, and Venice (since 2013) from 29 keys. Between the two, it is the Venetian structure, already operational since several years, to have recorded the largest volume of revenue (and room revenue). The management vehicle Veneto also pays a fee to the connected propco of ca. 660 thousand euros. According to budget sources the Generator Venice had been detected by the chain for approx. EUR 7.6 million (approx. 262 thousand a key) in 2011, while Albergo Principe Amedeo Srl, owner of the Generator building at the time Rome, later converted, had entered into a lease from EUR 9.4 million for the aforementioned asset in 07/2004.

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