Private equity-backed pan-European hostel operator Generator Hostels has opened its latest hostel in Hamburg. The venue is the second Generator hostel to open in Germany, joining the existing Berlin hostel, and is the sixth opening in Generator’s growing European hostel platform.
Generator Hamburg is part of a GBP200 million investment programme by private equity firm Patron Capital to roll out the hostel concept across Europe together with a significant capital investment programme to revitalise the original flagship location in London. The Group is also currently developing two further sites – Berlin Mitte and Barcelona, which will open in the first quarter 2013. Once these are live, the Generator brand will have over 5,100 beds across six countries and will be the largest freehold hostel chain in Europe; the Group is targeting a portfolio of 12-15 sites and 8,000 to 10,000 beds by 2015.
Generator Hostels are immediately identifiable by their strong focus on design, with curated art installations and bespoke, contemporary fit out. The architect of the urban inspired design is Anwar Mekhayech, Partner of The Design Agency in Toronto, the firm also working on Shangri-La Toronto, Momofuku and Soho House.
The Hamburg Generator is one of the platform’s most ambitious projects to date. Originally a department store known as the Klockmanhaus, it was the first skyscraper to grace the Hamburg skyline in the 1920s. The building subsequently was used as a warehouse, offices and a recording studio during the Beatles’ Hamburg recording phase where they recorded ‘Summertime’. The Generator Hamburg boasts 686 beds with a mix of 2, 4, 6 and 8-bed ensuite rooms, suitable for individual travellers, couples and groups. Prices start at EUR17 for a dormitory bed to EUR37 for a twin bed room. The 540m² of public space include the Generator bar and lounge, outside terrace and curated garden, chill-out lounge, café and dance floor. Other services and amenities include a movie screening room, free Wi-Fi, bike hire, free city tours and more.
Youth travel has remained resilient to economic pressures in Europe – the hostel concept championed by Generator benefits from being stylishly designed, affordable and fun in desirable, central locations. It has evolved significantly from the initial concept, and continues to offer a strong lifestyle identification. Generator Hostel locations average 700 beds with innovative bar and public spaces as well as comprehensive event and nightlife programming, driving social interaction and improving the guest experience. Over half of all bookings come direct or via the Generator website, which is available in eight languages, including Chinese.
Josh Wyatt, Investment Director at Patron Capital, says: “Hostels are a new and exciting asset class in the property sector, just as student accommodation has been over the last decade. Being the first institutional capital into the hostel sector, Patron has a longstanding commitment to the sector and continues to invest significant amounts of capital and team resources to ensure that Generator Hostels is the category leader and trend setter through the use of exceptional design, curation of a dynamic and communal atmosphere and a dedication to the highest safety levels. With currently the largest freehold hostel chain in Europe, we look to grow more into capital cities. Today Generator Hostels is an institutional quality product attracting a wide range of travellers from around the world. We are very excited about the latest opening and the opportunities for the Group going forwards. ”
Carl Michel, Executive Chairman of Generator, says: “Together with our highly supportive financial backers, Patron Capital, we are revolutionising the hostel experience; by creating a clear identity and strong design-led experience, our customers know that they can experience consistent quality whether they are in Dublin, Copenhagen, Hamburg or any of our other sites. We are aiming to be the pre-eminent hostel brand in Europe – and possibly beyond – and for this we are targeting a broad segment of incoming leisure travellers. This calendar year we will achieve a new record for Generator, when we exceed one million bed nights.”
