Queensgate completes £428m debt restructure for Generator Group

Queensgate Investments has completed an approximate €500m (£428m) debt restructuring for Generator Group, which owns, operates and develops accommodation across Europe and North America, including one design-led hostel in London.

Funds managed by Apollo Global Management provided nearly €100m (£86m) in secured additional financing in support of the restructuring.

Generator Group has 19 hotels, with a total of 3,194 rooms or 11,390 beds in 17 gateway cities across 10 countries, 17 of which are owned. The now 900-bed London property near London's King’s Cross station was the group’s first when it opened in 1995. Queensgate Investments acquired Generator in 2018.

Jason Kow, chief executive of Queensgate Investments, said: “Queensgate Investments is proud to have completed the restructure of the largest multi-jurisdictional financings during the Covid pandemic to support one of the most exciting asset-backed hospitality platforms on the street.”

Skardon Baker, senior partner of Apollo, said: “This transaction showcased the breadth of Apollo’s expertise with respect to offering well-structured, asset-backed capital solutions for complex recapitalisation and restructuring transactions. We were pleased to provide Queensgate with a creative financing solution for a diverse portfolio of hospitality assets.”

Ivo Kolev, also a partner at Apollo, added: “We are pleased to have worked with Generator’s sponsor, creditors and management team to ensure an appropriate capital base addressing the operational and earnings dislocation of the current Covid-19 pandemic and look forward to working with the company as it goes through this challenging operating environment.”