Covivio converts a Parisian building into a Generator hostel with a 7% target yield
The management contract concluded by the real estate company, with an initial duration of 15 years, reveals a non-guaranteed target yield of around 7%, according to the press release published on October 5, 2026. It will take effect upon delivery of the establishment, scheduled for the end of 2029, in the 13th arrondissement of Paris.
A former Orange building repurposed for accommodation
Covivio indicated that it is continuing "the transformation of its Parisian real estate portfolio". According to the group, the operation is part of its "strategy of transformation and rebalancing of its assets". It reflects its desire to adapt its properties "to changes in usage patterns and markets", prioritizing the transformation of existing buildings when their configuration and location are suitable.
The building on rue Bobillot, constructed in 1966, was acquired by Covivio in 2006 from Orange. It covers 3,650 m² over five levels, with 16% of the space allocated to infrastructure. Following Orange's departure in February 2023, the real estate company decided to give it a new purpose.
Sébastien de Courtivron, Deputy General Manager for Hotels at Covivio, specified that the building's configuration (with large open floor plates and a façade to be preserved) "was moreover better suited to this type of use than to conventional hotel rooms". He also cited the proximity to the Cité Internationale Universitaire, deemed conducive to an urban youth hostel project.
91 rooms, 454 beds and a second Parisian address for Generator
Generator was selected following a call for proposals launched in early 2025. The future establishment, named Generator Paris Place d'Italie, will have 91 rooms with 454 beds: 21 single rooms, 6 family rooms and 64 rooms with 4, 6 or 8 beds. Twelve of the family and single rooms will have private terraces on the top floor.
The project includes a restaurant-café open to residents as well as to local residents. The infrastructure spaces will be redesigned, with the creation of more than 300 m² of common living areas connected to the courtyard and the building's planted patio. The building is located near Tolbiac and Maison Blanche metro stations (lines 7 and 14).
Present in Paris since 2015 with an establishment at place du Colonel Fabien, in the 10th arrondissement, Generator will thus have a second address in the capital. Ben Russell, Development Director at Generator, stated that he considers this project as "the beginning of a long-term partnership, likely to continue with other projects in the future".
