Generator and Freehand Hotels announce record Q2 profits

Generator and Freehand Hotels have announced their highest ever quarterly profits, recorded in the second quarter of this year.

The brands saw an 11% year-on-year increase in profitability this quarter, against the second quarter of 2019, and said that June 2022 was the group's most successful month ever with almost 30% year-on-year growth in profit. The group's one London hotel was among the best performing properties in Europe.

Alastair Thomann, chief executive of Generator and Freehand Hotels, said: "We have seen a surge of demand for rooms in both our shared and private accommodation. This trend can be seen particularly amongst Gen Z and millennials who were among the first to get back on the road once borders reopened. These young, seasoned travellers currently make up the majority of our guests, favouring our community-driven and design-led offerings with a particular leaning towards the affordable, shared accommodation on offer.

"There is also a new high demand from families who now value us as an alternative to traditional hotel offerings, with a marked increase in six-bed and eight-bed dormitory bookings. Collectively, we have achieved 10% growth in the overall shared rooms revenue across Europe and 25% up in North America, compared to 2019 Q2."

F&B sales also contributed to the results, with most of the bars, restaurants and cafes across the group running at full capacity. Generator and Freehand predicted the surge would continue progressively in the coming months.

Founded in 1995, Generator is a boutique and lifestyle accommodation brand with a portfolio across Europe and North America. In March 2017, Queensgate Investments acquired Generator.