Yes, top leadership changes often take place after an acquisition. But the number of "no comments" we've received, and the quickness of it all, makes us think there's something much more complicated happening here.
While the sale from one private equity firm to another isn’t necessarily the most exciting news, the promise of further funds for expansion by the new owner shows a commitment to the budget model. The hostel landscape is very different than it was 10 years ago and by focusing on design, Generator managed to evolve the product.
Forget what you think you thought you knew about hostels. Today's hostels are still budget-friendly, but also incredibly design-forward and sophisticated.
If Generator Hostels' success — and yesterday's AccorHotels' announcement of the new Jo&Joe brand are any indication — hostels are a definite sector of hospitality that the bigger brands should be paying more attention to.
Generator Hostels is cleaving out an entirely new sub-segment in hospitality. The brand is geared toward young-minded people who want an affordable price point in major gateway cities like most hostels offer, but they also want a certain level of modern design and programming more typical of lifestyle hotel chains.
Knowing exactly who a hotel brand's customer is gives it the freedom to build events and an an ambiance just for them, without fear of turning off smaller demographic groups.
Generator is the leader of the design-savvy hostel market, an asset class that's become increasingly popular with sophisticated young travelers and money-conscious adults.