Owner of Generator Hostels understood to be considering a sale that could value it at up to £1bn
The owner of Generator Hostels is understood to be considering a sale that could value it at up to £1billion.
The boutique hotel and hostel company offers offers lodgings in London, Rome, Paris, New York and other major cities for less than £50 a night.
Up for sale: Generator Hostels’ current valuation is unclear, but the economic outlook is expected to help the business
It was quietly put up for sale in 2020, a source said.
The process was overseen by investment bank Goldman Sachs, but was halted by the pandemic.
It had been hoped the business would sell for £1billion at the time, the source added.
It is understood real estate private equity firm Queensgate Investment has drafted in consultants to conduct due diligence ahead of an auction, which is slated for the final quarter of this year.
Generator Hostels’ current valuation is unclear, but the economic outlook is expected to help the business as more people turn to less expensive holiday accommodation, the source said.
Bidders could include real estate funds with hospitality investments, such as those run by KKR and TPG.