Europe’s largest privately owned hostel chain a&o Hostels has unveiled plans to invest €500 mln in expanding its presence in key European cities.
The group said conversion of existing office and retail properties into hostel accommodation is earmarked as a key area for growth.
Founder and CEO Oliver Winter said a&o was flexible in its approach. ‘Whether lease or ownership, new-build or conversion, our property expansion covers a wide variety of property types. We are flexible and we want to grow,’ he said.
a&o executives are attending Mipim this week to accelerate the growth plans.
Currently, a&o has 38 hostels in 25 cities and nine European countries. The chain is seeking to scale up its presence in locations such as London, Paris, Rome, Madrid, Lisbon, Berlin, Munich, Prague, and Amsterdam.
The company’s latest property, a&o Florence, opening this summer, is an office conversion which will offer 470 beds within walking distance of Piazza del Duomo in the historic city centre.
‘We are very flexible in terms of size and floor plans, which gives us a head start and makes it easier and faster to implement,’ said Winter.
a&o Hostels reported an ‘exceptionally strong’ performance in 2023, with 6.1 million overnight stays, 2.7 million guests and a turnover of €217 mln. It said the travel industry's resurgence following Covid indicated a sustained increase in travel interest, with summer bookings already exceeding pre-pandemic levels of 2019.
