European hostel chain a&o, owned by StepStone Group and Proprium Capital Partners, has acquired Berlin-based Schulz Hotels as part of a €500m growth spurt.
The hostel company stated that the acquisition will support its growth strategy in its core markets and enable it to further diversify its offering as it looks to accelerate its pan-European growth ambitions.
The founders of Schulz – Nizar Rokbani, Oskar Kan and Sacha Gechter – are joining the a&o management and advisory team as it plans a brand and offering expansion. The trio previously founded Meininger, a pan-European hotel/hostel hybrid company which now operates over 20,000 beds.
StepStone Group and Proprium Capital Partners sponsored the €800m management-led acquisition of a&o at the end of 2023 and together they have invested about €500m into the platform’s expansion over the last 18 months.
As well as Schulz Hotels, other acquisitions have included assets in London, Brighton, Brussels, Antwerp and Heidelberg, while a near-term pipeline of further transactions in other leading European cities in progress.
Schulz Hotels currently operates as a single, 1,000-bed hotel at Berlin’s Ostbahnhof, with another hotel in the planning stage in Berlin’s new Heide Quarter, close to the main train station.
Oliver Winter, founder and CEO of a&o Hostels, said: “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.
“Since 2024 we have deployed circa €500m scaling the a&o Hostels platform and leveraging the team’s unrivalled real estate, investment and hostels experience.
“With a supportive investor base, and ongoing market dislocation presenting attractive investment opportunities, we are well placed to maintain this momentum in a rapidly maturing sector benefitting from compelling demographic and technological tailwinds.”
Sascha Gechter, co-founder of Meininger and Schulz, added: “We are delighted to join forces with a&o and take the expansion of Schulz Hotels to the next level. Our partnership is complementary – we share values, target groups, and ambitions. Enormous synergies are emerging in purchasing, sales, and technology, from which both brands will benefit.”
Philipp Westermann, partner at Proprium Capital Partners, said: “a&o Hostels’ acquisition of Schulz Hotels marks the latest milestone in our drive for strategic growth across key European markets. Joining forces with the Schulz founders, who we have known for over a decade, will allow us to redefine what affordable travel can be.”
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