EU/US: Hotel and hostel operator Generator has completed a €750 million refinancing of debt with new and existing investors across Europe and the United States.
Owned by Queensgate Investments, Generator’s portfolio comprises 21 hotels and hostels offering more than 12,000 beds across its two brands: Generator and Freehand.
The latest refinancing featured a combination of European and US debt facilities. For Generator’s European arm, Ares Management backed €440 million (in Euros, Pounds and Danish Krone) while existing US lenders Waterfall Asset Management and Värde Partner backed US $330 million.
Last month in October, Generator reported record revenues of €225 million – up from €180 million pre-pandemic. Jason Kow, chief executive of Queensgate, said Generator’s performance since the pandemic had enabled it to refinance in a challenging market.
Kow said: “We’re holding the assets because they are continuing to deliver significantly for us, both in terms of earnings and capital values.
“This is one of the largest and most innovative real estate financings that the market has seen in years, involving multiple outgoing lenders across 10 countries. We are hugely grateful for our new partnership with Ares in Europe and our strengthened existing partnership with Värde and Waterfall in the US,” he added.
Queensgate bought the Generator portfolio, then consisting of 12 properties, in 2017 from Patron Capital for €450 million.
Generator currently has presence in 12 European cities and five cities in the US. According to its website, Generator will soon launch in the Middle East and Asia-Pacific regions.