Generator’s Takeover of Paramount Hotel in Times Square Is Part of Broader Hostel Reboot
Photo Caption: The Paramount Hotel in New York City is now under third-party management by Generator. Source: Generator.
Skift Take
Generator makes an intriguing case that there's an opportunity to target well-off millennial travelers looking for distinctive places to stay in cities where budget hotels with buzzy bars are scarce.
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.
Premium Economy LodgingThe deal underscores how hostels, smaller-roomed hotels, and other "premium economy" lodging have attracted a
