Brookfield Asset Management has acquired the European business of Generator Hostels from Queensgate Investments for €776 million.
Following acquisition talks which began in February, the asset manager has secured ownership of the hostel platform which owns 15 assets across 10 countries in gateway cities including London, Madrid, Paris, Rome and Berlin.
Following the purchase, Brookfield said it plans to pursue strategic acquisitions to drive growth for Generator, adding that it plans to secure third-party management agreements for new, related assets within the hostel market.
Queensgate Investments acquired Generator from Patron Capital and Invesco Real Estate in 2017 for €450 million.
Why it matters
Hostels have continued to capture the attention of investors, and this deal reflects the growing investor interest in the asset class, which has become more appealing as younger generations increasingly seek cost-effective yet stylish travel accommodations and experiences. Brookfield’s acquisition highlights the broader trend of expanding beyond traditional hotel assets and into innovative, cost-effective lodging models that cater to evolving consumer preferences.