Generator Hostel Acquisition, Valuation, Funding & Investors
Generator Hostel was acquired by Brookfield Asset Management for $842M in May 2025, a 3.5x multiple on $243M of revenue.
Generator Hostel revenue at acquisition
$243M
Last twelve months · May 2025
Generator Hostel revenue multiple at acquisition
3.5x
EV/Revenue · May 2025
Cumulative funding Generator Hostel raised
$274M
across 2 funding rounds
About Generator Hostel
Generator Hostel is a Barcelona-headquartered operator of design-forward hostels tailored for digital nomads and travelers. The company runs properties in cities such as Madrid, Venice, and Edinburgh, offering shared dorms, private rooms, co-working spaces, and rooftop terraces. Each location features high-speed Wi-Fi, 24-hour reception, and social events like yoga sessions and pub crawls. Generator Hostel emphasizes community through daily activities and partnerships with local tour operators.
Founded
1993
HQ
LondonWebsite
Status
Acquired
Customer focus
B2C
Revenue model
Product sales
Revenue
$243M (May 2025)
Valuation
$325M (Nov 2014)
Sectors
Generator Hostel Acquisition
Generator Hostel was acquired by Brookfield Asset Management for $842M on 16 May 2025.
The acquisition price implies a 3.5x revenue multiple on $243M of revenue.
Before the acquisition Generator Hostel had raised $274M across 2 funding rounds.
Brookfield Asset Management acquired Generator Hostels' European business from Queensgate Investments for €776 million ($869 million) in May 2025. Generator operates a hybrid hostel-hotel model across 15 properties with approximately 2,800 rooms in 10 gateway European cities including London, Madrid, Paris, Rome, Berlin, Amsterdam, Barcelona, and Stockholm. The properties combine dormitory-style accommodations with private rooms, communal gathering spaces, bars, and cafes designed to encourage social experiences while offering affordable luxury positioning. Queensgate had originally purchased Generator from Patron Capital and Invesco Real Estate in 2017 for €450 million and invested substantially in brand enhancement and expansion during its eight-year ownership period, including a €300 million planned investment and a €750 million refinancing in November 2023. Brookfield plans to accelerate Generator's growth through strategic acquisitions and third-party management agreements within the European hostel sector, leveraging its existing hospitality platform which includes Center Parcs, Edyn, Experimental Group, and Selenta Group. The acquisition reflects growing investor interest in hybrid accommodation models that combine the cost-effectiveness and flexibility of hostels with hotel-quality amenities, capturing demand from younger travelers seeking stylish, affordable lodging experiences across major European cities.
| Acquirer | Date | Type | Price | EV/Revenue |
|---|---|---|---|---|
| 16 May 2025 | PE buyout | $842M | 3.5x |
Generator Hostel Valuation
Generator Hostel is currently valued at $325M, based on its undisclosed-stage round in November 2014. Read the announcement ↗
The $75M round included Invesco.
Generator Hostel valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Nov 2014 | Undisclosed stage | $325M |
Generator Hostel Funding History
Generator Hostel has raised a total of $274M across 2 funding rounds.
Generator Hostel's first fundraising round was a $199M strategic investment round in August 2013. The most recent completed round was a $75M undisclosed-stage round in November 2014.
Generator Hostel funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Nov 2014 | Undisclosed stage | Invesco | $75M | $325M | Generator Hostels is a luxury hostel brand that pioneered the 'urban design hostel' concept, combining stylish design with hostel-style rooms across European cities. The company was originally acquired by Patron Capital in 2007 and by November 2014 operated 5,200 beds across 7–8 properties in European cities including London, Berlin, Paris, Rome, Copenhagen, Amsterdam, Madrid, and Stockholm, with planned expansion to Miami. In November 2014, Invesco Real Estate, in partnership with WL Ross & Co and Invesco Fixed Income, completed a minority investment in Generator, acquiring approximately 23% of the company in exchange for €60 million in growth capital. This marked Invesco's inaugural investment through its opportunistic strategy focused on growth businesses. The €60 million investment was structured as a minority sale by Patron Capital and was characterized by company executives as a major validation of the hostel segment as an institutional-quality asset class. Generator deployed the capital to expand its portfolio across Europe and into the United States, with plans to reach 20 properties by 2018 and add approximately 1,800 beds by 2015 alone. By 2017, Generator had grown to 14 hostels with 8,700 beds and was generating approximately €70 million in annual revenue before being acquired by Queensgate Investments for €450 million, which included the exit of both Patron Capital and Invesco's stake. |
| Aug 2013 | Strategic investment | Patron Capital Partners (lead) | $199M | - | Generator Hostels is a design-led hostel owner and operator focusing on urban, stylish accommodations in central European locations, revolutionizing the hostel experience with a mix of shared and private rooms, bars, and chill-out areas. Patron Capital acquired Generator in 2007 and invested significantly, expanding from a small family business to a pan-European chain, including €100 million in transformations and further growth investments. By 2013-2014, Generator had around 5,200 beds across seven cities like London, Dublin, Copenhagen, Berlin, Hamburg, Venice, and Barcelona, with plans for Paris, Rome, and Amsterdam openings by 2015. In 2014, Patron Capital, as owner, completed a minority sale of up to 23% stake to Invesco Real Estate for €60 million in growth capital, confirming Generator's valuation premium and funding accelerated expansion in Europe and the US. This transaction highlighted hostels as an emerging asset class with strong fundamentals, positioning Generator as a market leader in product, design, and brand recognition. By the 2016 sale to Queensgate Investments, Generator had grown to 14 assets (12 operational, two under development) with 8,639 beds in cities including London, Paris, and Copenhagen, achieving revenues above €70 million and an enterprise value of circa €450 million. Queensgate planned long-term ownership and over €300 million in additional hostel investments. The exit followed strong performance under Patron, redefining the hostel sector amid growing investor interest in high-volume, low-cost models with improving margins from ancillary spend. |
Who has invested in Generator Hostel?
2 investors have backed Generator Hostel across its funding rounds, including Invesco and Patron Capital Partners.
Lead investors include Patron Capital Partners.
Generator Hostel Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
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Start Free TrialGenerator Hostel Competitors
Generator Hostel competitors include listed companies like Dan Hotels, National Corporation for Tourism & Hotels, Southern Sun and Plava Laguna, and private ones like Yotel and Fleur Hotels.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
 Israel | Publicly listed | $488M | $51M | $837M | - | |
 UAE | Publicly listed | $594M | $163M | $836M | - | |
| London | Private | - | - | $833M | - | |
 South Africa | Publicly listed | $437M | $141M | $823M | 2.1x | |
 Croatia | Publicly listed | $283M | $106M | $862M | - | |
![](data:image/svg+xml,<svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 20 20"><rect fill="%23e5e7eb" width="20" height="20" rx="4"/></svg>){kind=small} Fleur Hotels |  India | Private | - | $44M | $1B | - |
Generator Hostel Public Comps
Generator Hostel is no longer listed, but its public comps include Dan Hotels, National Corporation for Tourism & Hotels, Southern Sun, Plava Laguna, PPHE Hotel Group, China Travel International, Maistra, Star Entertainment Group, Grupo Posadas and SJM Holdings.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $488M | $51M | 2.4x | - | 23.0x | - | |||
| $594M | $163M | 1.4x | - | 5.2x | - | |||
| $437M | $141M | 2.1x | 2.1x | 6.5x | 6.6x | |||
| $283M | $106M | 3.3x | - | 8.8x | - | |||
| $627M | $128M | 3.8x | 3.7x | 18.5x | 12.6x | |||
| $520M | $122M | 2.0x | 1.9x | 8.6x | 8.3x | |||
| $293M | $99M | 2.7x | - | 8.1x | - | |||
| $763M | ($100M) | 1.2x | 1.2x | (9.4x) | (777.7x) | |||
This data is available for Pro users. Sign up to see all Generator Hostel competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Generator Hostel
| When was Generator Hostel founded? | Generator Hostel was founded in 1993. |
| Where is Generator Hostel headquartered? | Generator Hostel is headquartered in London, United Kingdom. |
| Is Generator Hostel publicly listed? | No, Generator Hostel was acquired by Brookfield Asset Management in May 2025. |
| Who acquired Generator Hostel? | Generator Hostel was acquired by Brookfield Asset Management in May 2025. |
| How much was Generator Hostel acquired for? | Generator Hostel was acquired for $842M in May 2025, a 3.5x revenue multiple. |
| What is Generator Hostel's valuation? | Generator Hostel was last valued at $325M in its undisclosed-stage round in November 2014. |
| How much funding has Generator Hostel raised? | Generator Hostel has raised $274M across 2 funding rounds. |
| What was Generator Hostel's last funding round? | Generator Hostel's last funding round was a $75M undisclosed-stage round in November 2014. |
| Who are Generator Hostel's investors? | Generator Hostel's investors include Invesco and Patron Capital Partners. |
| Which companies are comparable to Generator Hostel? | Companies comparable to Generator Hostel include Dan Hotels, National Corporation for Tourism & Hotels, Yotel, Southern Sun, Plava Laguna and Fleur Hotels. |
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