a&o Hostels Expands Its Presence in Europe with New Acquisition in Manchester
a&o Hostels, the largest chain of hostels in Europe by number of beds, has announced the acquisition of full ownership of two hotels located in Portland Street and Dickinson Street, in the heart of Manchester. The deal was completed with the funds Ares Real Estate and EQ Group and concerns two adjacent buildings previously operating under franchising with Accor, with the brands ibis and Novotel.
One of the new a&o Hostels in Manchester
The structures are located in a position of absolute importance, between Deansgate and Piccadilly, one of the most accessible and dynamic areas of the city. The proximity to the main urban connections and the distance of approximately 15 minutes on foot from the central train station make the complex particularly attractive for international travellers, budget-conscious tourists, school groups, and families.
£8.2 Million Refurbishment Plan
A major redevelopment project is planned with a total value of £8.2 million aimed at the transformation of the two buildings – four floors for a total surface area of approximately 13,000 square meters – into a structure with 303 rooms and 1,218 beds. The distribution of spaces foresees private rooms (30%), family rooms (30%), and dormitory rooms (40%). The works will be completed by the first quarter of 2027, keeping the structures operational for the entire duration of the project.
A private double room at a&o Hostels in Manchester
Strategic Vision and Expansion
Oliver Winter, CEO of a&o Hostels, commented: “Manchester is one of the best performing hotel markets in the UK, after London, and attracts over 1.9 million visitors each year. It has been one of our strategic objectives for a long time, so we are very satisfied to have consolidated our presence through this acquisition.” With this operation, Manchester becomes a&o Hostels’ fourth asset in the United Kingdom, helping to lead to 44 the total number of structures in 10 European countries.
The CEO of a&o Hostels Oliver Winter
Growth and Investment Plan
The acquisition falls within a 500 million euro investment plan oriented towards consolidation in core markets and the development of an offer of accessible hospitality at an institutional level. According to forecasts, the European market will record an average growth rate (Cagr) of 5.8% between 2025 and 2030. Over the last 24 months, a&o Hostels has expanded its portfolio with over 8,500 new beds, both operational and in the development phase.
Source and Reference
For more information, please visit Here