International law firm Brown Rudnick LLP has advised private equity real estate fund manager Queensgate Investments LLP on its acquisition of Generator Hostels, Patron Capital’s premium hostels business, for €450,000,000.

Generator comprises 12 hostels and two development sites in 14 cities, including London, Paris, Barcelona, Rome, Berlin and Miami. It offers stylish, design-led accommodation with a social twist and a brand designed to appeal to a market of young, adventurous, open-minded Millennials.

Nick Vasquez, Partner in Brown Rudnick’s Corporate Practice, led a team of lawyers spanning the firm’s London, Paris, Providence and Boston offices, to advise on a complex, cross-border acquisition involving 11 jurisdictions across Europe and the US.

Nick Vasquez commented: “Generator is overhauling the hostel concept with an offering that is proving extremely popular with a new generation of travellers. The business is rare in the hospitality industry for providing a recognisable and trusted brand for a young demographic to turn to. Queensgate Investments is excited to add the business to its portfolio and Brown Rudnick is pleased to be involved in its continued growth and success. In a rapidly changing macro environment, it is encouraging to see cross-border deals of this size still getting done in the real estate market.

Generator is targeting a portfolio of 20 hostels containing 12,500 beds by the end of 2018, with a further 3,000 beds in its development pipeline.

CMS advised Patron Capital on the sale.