Queensgate Investments, Owners of Generator, has Acquired Freehand Hotels

Main Photo: Rudolph’s Bar & Tea at the Freehand Los Angeles

Date: October 2019

Location: New York, Los Angeles, Chicago and Miami, USA

Name: Generator…we believe the Freehand brand may well remain

No. of Keys: 1,000

Seller: A consortium including Yucaipa Companies and Sydell Group.

Buyer: Queensgate Investments, owners of Generator, Grange Hotels, Holiday Inn Kensington Forum and several other property investments, has acquired Freehand Hotels.

Following completion of the $400 million deal, the budget hotel brand will operate all four Freehand properties and their respective food and beverage outlets.

The acquisition by the London-based firm merges the original upscale hostel trailblazers and reaffirms Generator as a global pioneer in the hospitality industry.

When the deal completes, Generator will operate a total of 18 properties worldwide, including Freehand’s New York, Los Angeles, Chicago and Miami hotels.

The company’s original portfolio, including Generator Miami and the upcoming Generator Washington, DC, will not undergo any operational or branding changes.

However, with four Freehand properties functioning in parallel, the acquisition will present valuable opportunities to strengthen Generator’s presence in North America.

Similarly, while Generator has no plans to make any immediate changes to Freehand’s operations, the company will look to implement successful practices from Generator.

“One of Generator’s key principles is to constantly provide the best and most innovative experience to the modern traveller, wherever they go,” said Alastair Thomann, chief executive of Generator.

Price: US$400m

Price per Key: US$ 400,000

THPT Comment: Under Queensgate’s ownership since 2017, Generator has doubled EBITDA, implemented an estate wide accretive capex program to upgrade assets to 4* hotel standard, developed new assets in Madrid and Miami, and acquired the Courtyard Marriott in Washington DC’s Dupont Circle neighbourhood to convert to a Generator.

First Seen: Breaking Travel News

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