Texas-based TPG Real Estate has acquired A&O Hotels and Hostels, the largest privately owned hostel platform in Europe, for an undisclosed sum.
Under the agreed terms, TPG Real Estate will acquire 31 leased and owned assets, with more than 20,000 beds located primarily in Germany. Key members of A&O's management team, including CEO Oliver Winter, will continue to lead the company after the transaction.
'We founded A&O almost twenty years ago in Berlin, and it has grown into one of the leading German budget hotel operators. With TPG's global presence and expertise in buying and building platforms, I believe it is the ideal partner to strengthen and expand our business across Europe,' commented Oliver Winter, CEO of A&O.
'A&O is a strong operator that is well positioned to capitalize on favorable global and European travel trends. Over the last number of years the sector has experienced rapid growth, particularly due to an increase in travelers in search of affordable, reliable, lodging options. Oliver has built a great business that addresses this demand. We are excited to partner with A&O to expand and enhance the platform,' said Anand Tejani, partner at TPG Real Estate.
TPG Real Estate is the real estate platform of global private investment firm TPG. The platform includes both equity investor TPG Real Estate Partners and TPG Real Estate Finance Trust, a debt origination platform, which together manage more than $7 bn in assets.
