EXCLUSIVE: Boutique hostel brand Generator ramps up expansion with management offers

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Boutique hostel brand Generator has revealed the Boutique Hotelier plans to offer management contracts and additional leases to properties in a bid to accelerate the group’s ambitious growth.

Speaking to BH, CEO of Generator Hostels Fredrik Korallus said that while you’ll never hear about the brand promising a certain number of properties open by a specific year, it is very much part of the plan to continue to create new hostels in urban hubs around the world.

And in a bid to ramp up these expansion plans, Korallus explained that the group is now looking at management contracts and additional leases; currently only two of the 14 Generator Hostels are leases – Berlin and Stockholm – while all other assets are owned by the brand.

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Korallus said: “It’s a controlled and careful growth but we need to be in urban centres and major transport hubs, so that will steer where we go. This is not a brand that wil end up in a lot of secondary tertiary markets, not at this stage of our growth anyway.”

Generator Miami launched earlier this year as the group’s debut US property, and will be the first of many to be rolled out across the country, with the likes of Washington DC, LA, and San Francisco on the hitlist.

Korallus explained that the model had to be tweaked slightly – especially from an F&B perspective – when they opened in Miami, to fit with the demands of the market.

“In Europe there is a lot more price pressure on breakfasts,” he says. “Whereas in the US there is a lot more money spent on breakfasts, the whole F&B experience will be much more dominant in the US.”

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