It is interesting that $200 million was invested into a hostel company:
The hostel operator, owned by Patron Capital, is currently serving around 30,000 visitors a month, and will be offering more new hostels across Europe, as part of a £200 million investment programme.
Josh Wyatt, the investment director at Patron Capital, said, ‘Hostels are a new and exciting asset class in the property sector, just as student accommodation has been over the last decade. Being the first institutional capital into the hostel sector, Patron has a longstanding commitment to the sector and continues to invest significant amounts of capital and team resources to ensure that Generator Hostels is the category leader and trend setter through the use of exceptional design, curation of a dynamic and communal atmosphere and a dedication to the highest safety levels.
This hostel opening in Hamburg was part of their expansion into Dublin and Copenhagen, as well as Barcelona and Venice. They will also open a second Berlin hostel in 2013.
What does this kind of investment mean for the hostel industry?
Billionaire to open hostel chain