Europe's largest hostel chain, a&o Hostels, has acquired Schulz Hotels in Berlin as part of its ambitious €500 million growth strategy. This acquisition aims to diversify a&o's portfolio and accelerate its expansion across Europe, capitalising on the increasing demand for budget-friendly travel options.
a&o Hostels, founded in 2000 by Oliver Winter, currently operates 44 properties with around 30,000 beds across 10 European countries. The acquisition of Schulz Hotels, a premium budget option with a strong design and amenity focus, will enhance a&o's offerings for both traditional hostel customers and business travellers. Schulz Hotels, founded in 2018, operates a 1,000-bed hotel at Berlin's Ostbahnhof and plans to open another in Berlin's Heide Quarter.
The acquisition is supported by StepStone Group and Proprium Capital Partners, who have invested approximately €500 million into a&o's expansion over the past 18 months. This includes acquiring assets in cities such as London, Brighton, and Brussels. The European Hostels Market is projected to grow at a compound annual growth rate of 5.8% from 2025 to 2030, driven by increasing inbound tourism and budget-conscious travellers.
Oliver Winter, CEO of a&o Hostels, stated, “The combined know-how of a&o and Schulz amounts to 100 years of hostel expertise – the perfect prerequisite for further dynamic and creative growth in prime locations in European cities.” Sascha Gechter, co-founder of Schulz, expressed enthusiasm about the partnership, highlighting the synergies in purchasing, sales, and technology.
This acquisition marks a significant step in a&o's strategic growth, positioning it to redefine affordable travel in Europe.
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