U.K.-based private-equity firm Queensgate Investments LLP closed the acquisition of New York-based hospitality company Freehand Hotels for about $400 million.

The youth hostel brand was sold by a seller consortium including The Yucaipa Cos. and Sydell Group LLC.

Generator, a Queensgate-owned company, will manage Freehand Hotels and retain the identity of the Freehand and Generator brands.

Freehand owns and operates about 1,000 rooms across four hotels in Manhattan, N.Y.; Miami Beach, Fla.; Chicago; and downtown Los Angeles.