Generator's Takeover of Paramount Hotel in Times Square Is Part of Broader Hostel Reboot

Generator said on Tuesday it had gained management control of the Paramount — a hotel with 605 guest rooms in New York's Times Square — in a strategy adjustment for the UK hospitality company, which runs hostels and other premium economy lodging.

Generator, acquired in 2017 by private equity firm Queensgate Investments, had never managed a hotel as a third party. The company, whose chains are Generator and Freehand, has instead had an ownership interest in its properties.

"We're finally ready for third-party management," said CEO Alastair Thomann during an interview while visiting Washington, D.C. "We have more deals to announce shortly. Next year we'll start doing franchise deals and possibly licensing deals."

The group is on track to produce between $200-$250 million in revenue next year, Thomann said.

The deal underscores how hostels, smaller-roomed hotels, and other "premium economy" lodging have attracted a lot of investor capital.

Selina, a youth-focused hospitality brand, teased last week that it still plans to go public this year in a merger with BOA Acquisition Corp — a special purpose acquisition company (SPAC)