Can't Afford Hoxton or Moxy? Generator's New CEO Says: We're Premium Too — But Just £40 Per Bunk
European hostel brand Generator, acquired by Brookfield Asset Management for approximately €776 million, plans to double its 15-property footprint by 2030 by converting distressed mid-market hotels such as Novotel, Mercure, and Holiday Inn. New CEO Xavier Mufraggi says the conversion thesis is structurally compelling: four-star buildings require minimal alteration, allow four-to-six beds per room at around £40 per bed, and come with large F&B spaces that can be monetized through dinners, parties, and rooftop events, targeting at least 40% higher RevPAR than a standard three- or four-star hotel. Expansion will be mapped along Europe's high-speed rail network, with plans for multi-city passes…
Impact and considerations
This move signals a revaluation of mid-market hotel assets and a shift toward premium hostel models, potentially impacting business travelers' accommodation choices and costs.
Key points
- Generator plans to double its property count by 2030, targeting mid-market hotels such as Novotel, Mercure, and Holiday Inn.
- The conversion model involves placing 4-6 beds per room at around £40 per bed, and monetizing F&B and rooftop spaces.
- Targeting at least 40% higher RevPAR than a standard three- or four-star hotel.
- Expansion will be mapped along Europe's high-speed rail network, with plans for partnerships with Interrail, Eurostar, and Lime.
- Franchising is deferred; the company prefers owned and managed models.
Sources and time
- Primary source
- Skift
- Other sources
- 0
- First source publication
- 25 Aug 2026, 22:00
- Page published
- 25 Aug 2026, 22:22
- Last updated
- 25 Aug 2026, 22:00
- Original links
- Skift Feed：Can’t Afford Hoxton or Moxy? Generator’s New CEO Says: We’re Premium Too — But Just £40 Per Bunk (opens in a new tab)Primary source · en · Published 25 Aug 2026, 22:00