Generator Group has completed €750 million global refinancing with Ares Management, Värde Partners and Waterfall Asset Management.
The transaction - which involved 13 jurisdictions worldwide - featured a combination of European debt facilities and private bond issuances of around €440 million for Generator’s European arm which was backed by Ares Management, and US debt facilities of around $330 million for Generator’s US arm which was backed by Generator’s existing lenders Waterfall Asset Management and Värde Partners.
Owned by Queensgate Investments, Generator consists of 21 hotels, representing around 12,00 beds across 17 tier one cities. The refinancing will help Generator progress with its global expansion.
Brown Rudnick assisted Queensgate with the arrangement and structuring of the global financing as well as the legal execution.
Why it matters
Amid widespread refinancing concerns, Generator’s success in securing this deal further indicates the amount of interest in the hotel sector, with no shortage of firms looking to invest. Furthermore, the involvement of prominent firms like Queensgate, Ares Management, Värde Partners and Waterfall Asset Management indicates strong confidence in Generator's business model and future prospects as younger travellers continue to flock to less-expensive hotel accommodation – this demand has led to Generator forecasting 2023 earnings of €225 million compared to 2019’s pre-pandemic €180 million, with Ebitda at €75 million compared to 2019’s €50 million and up 40 per cent from 2022.
What they said
Jason Kow, CEO of Queensgate Investments said: “This is one of the largest and most innovative real estate financings that the market has seen in years, involving multiple outgoing lenders across 10 countries. We are hugely grateful for our new partnership with Ares in Europe and our strengthened existing partnership with Varde and Waterfall in the US.”