Queensgate Investments, the U.K. private-equity firm behind the evolving Generator hostel brand, is acquiring Freehand, another hostle-like brand, for about US$400 million from hotel operator Sydell Group and private-equity investor Ronald Burkle, according to a Wall Street Journal report.
Queensgate Investments plans to operate the four hotels and the Broken Shaker food and beverage concept alongside its Generator properties, which today stand at 13 in major European markets like Rome, Paris and Venice. Generator recently made its initial foray into the U.S. with a property in Miami Beach that has a greater percentage of private rooms versus traditional shared hostel rooms.
“The acquisition of Freehand is of strategic importance to Generator and elevates the group to become one of the largest lifestyle hospitality platforms in the world,” Queensgate’s chief executive Jason Kow said in a statement to The Wall Street Journal. The deal is expected to close sometime this summer.
Freehand opened its first property in Miami Beach in 2012 and followed with F&B-led properties in New York City, Chicago and Los Angeles.
Sydell also owns the Line and NoMad hotel brands and told The Wall Street Journal it plans to launch a new luxury members’ club brand.