Generator Group has completed a refinancing deal worth approximately $805 million (€750 million) with new and existing lenders across Europe and the US. Generator Group, which owns or runs 21 hotels, has seen strong results following the pandemic, giving its owner Queensgate the ability to refinance the group’s global debt.
Described as “one of the largest and most innovative real estate financings that the market has seen in years,” by Queensgate Investments CEO Jason Kow, different debt facilities have been used for different arms of the business.
For the Europe business, firm Ares Management backed private bond issuances and debt facilities in Pounds, Euros and Danish Krone of approximately $472 million (€440 million). While in the US, existing lenders Waterfall Asset Management and Värde Partner backed US debt facilities of around $330 million.
At the start of October, Generator gave a financial update, showing it is on track to produce revenues of about $238 million (€225 million) this year — 25% more than its revenues before the pandemic.
With the new refinancing scheme, Generator said that it is “now armed to continue its strategy of superlative organic growth.”
To find out more about Generator’s expansion strategy, watch the interview with its CEO from last year’s Skift Global Forum East (below) or read Skift’s piece Generator’s Takeover of Paramount Hotel in Times Square Is Part of Broader Hostel Reboot.