a&o Hostels, Europe's largest privately owned hostel chain, has announced its entry into the Manchester market with the acquisition of two centrally located hotel properties. The former ibis and Novotel buildings, situated between Deansgate and Piccadilly, will undergo an £8.2 million refurbishment to transform into a 303-room, 1,218-bed hostel. The project is expected to be completed by early 2027, with the properties remaining operational throughout.
The acquisition marks a&o's fourth UK asset, expanding its European portfolio to 44 properties across 10 countries. This move aligns with a&o's €500 million growth strategy, driven by increasing inbound tourism and demand for budget-friendly accommodation. CEO Oliver Winter highlighted Manchester's appeal, stating, "As one of the UK’s best performing hotel markets outside of London, attracting over 1.9 million visitors annually, we have long regarded Manchester as a key strategic target."
The refurbishment will offer a mix of private rooms, family rooms, and dormitories. a&o Hostels aims to capitalise on the growing trend of budget-conscious travellers and the rise of institutional-quality hostel assets. The company has added 8,500 beds across Europe in the past 24 months, with recent acquisitions in cities like London, Brighton, and Brussels.
Founded in 2000, a&o Hostels has grown to manage 30,000 beds and welcomed a record 2.8 million guests in 2024. The Manchester acquisition is part of a broader strategy to expand its budget-friendly offerings to more European cities.
```
