EU: Privately owned hostel chain a&o Hostels has revealed plans to invest €500 million towards its European expansion.
The company is targeting office and retail conversions in cities such as London, Paris, Rome, Madrid, Lisbon, Berlin, Munich, Prague, and Amsterdam. According to a&o‘s CEO Oliver Winter, negotiations are already underway.
Currently, a&o’s CO2 footprint is 3.73 kilograms per night – reportedly around 80 per cent lower than other industry brands. The company aims to become one of Europe’s first net zero hostel chain by 2025, and repurposing buildings will support this goal.
Conversions will also allow a&o sites to be centrally located. The group operates 38 properties in 25 cities across nine European countries, with the most recent property a&o Florence an office conversion to 470 beds. It is due to open this summer.
Winter said: “Whether lease or ownership, new build or conversion, our property expansion covers a wide variety of property types. We want to grow, and 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.”
In 2023, a&o recorded 6.1 million overnight stays – an increase of 9.9 per cent from 2022. The company hosted 2.7 million guests during this period, which marked a 22.7 per cent increase from the previous year (2.2 million), and a turnover of €217 million – a 26.2 per cent increase from 2022 (€172 million).
The post European hostel chain a&o plans €500 million expansion appeared first on Boutique Hotel News.