European hostel brand Generator has identified distressed mid-market hotels as the growth vehicle to double its 15-property footprint by 2030.
Xavier Mufraggi, named CEO in July, told Skift the targets are Novotel and Holiday Inn-tier properties.
“Everything which is in between right now is in trouble,” he said. “If you look at the deals right now, there are a lot of Novotel, Mercure, Holiday Inn, and all of them. They are available.”
“There’s not really a problem of finding them. It’s just to find the right price,” he added.
Generator was acquired by Brookfield Asset Management in May 2025 for approximately €776 million (about $876 million). The first conversion is already underway with the Novotel London Greenwich.
The Acquisition Thesis
The appeal of a four-star hotel, Mufraggi said, is structural as he doesn’t need to touch the walls.
“I could put four or five beds in, and they have their own b
