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Generator Hostels Backer Is Spending $400 Million to Buy Micro-Hotel Operator Freehand

Andrew Sheivachman

Photo Credit: An image of a Freehand New York room, which will be acquired as part of a deal by Generator to boost its U.S. expansion. Sydell Group

Skift Take

Hostels and micro-hotels have been sexy again for the last few years. Sydell Group and Ron Burkle are cashing in as Generator works to move away from its hostel roots and into the wider world of boutique hospitality.

As alternatives to mainstream hotels grow in popularity among travelers, brands offering different concepts have found success and acquisition interest from industry players. Hostels and micro-hotels are back in vogue and investors are paying attention. Freehand Hotels, which operates four properties in New York, Chicago, Los Angeles, and Miami, will be the next company sold off as competition increases in the space. The Wall Street Journal reports that the brand will be sold for

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