The Berlin-based hostel chain A&O Hotels & Hostels plans to invest approximately 500 million Euros in the group’s expansion, converting existing properties used as offices and shops into accommodations. Founder and CEO Oliver Winter has shown flexibility towards real estate contracts, stating, “Whether it’s leasing or ownership, new construction or conversion, our real estate expansion covers a wide variety of property types.” The group’s next opening in Italy, A&O Florence, exemplifies the conversion of office spaces into accommodations.

Winter also announced plans to expand across Europe in key locations such as London, Paris, Rome, Madrid, Lisbon, Berlin, Munich, Prague, and Amsterdam, noting that the company is already engaged in several negotiations. Currently, the group has a portfolio of 38 hostels, with approximately 28,500 beds in 25 cities across 9 European countries. The year 2023 was the best performing year in the group’s history, with 6.1 million overnight stays, 2.7 million guests, and a turnover of 217 million Euros. As reported by “The Bulletin” on November 14, 2023, A&O Hotels & Hostels was sold by TPG Real Estate to investment firms StepStone and Proprium. The company’s transaction, valued at 800 million Euros, saw an EBITDA multiple of 10.71.

In Italy, as reported in “The Bulletin” on March 3, 2023, A&O sold one of its two newly constructed properties located at Via Ca’ Marcello 15 in Mestre (Venice) to Campus X. Following the sale of one of the two properties, A&O’s nearly two thousand beds were reduced: now, Campus X offers 284 keys, for a total of 568 beds. Among A&O Group’s global pipeline are 3 facilities, offering a total of 1,334 beds. In Italy, the group currently has only the Venice Mestre property, with 309 keys. The opening of A&O Florence is scheduled for early summer, following the initial announcement in 2020 and a halt in construction due to the pandemic. The facility will have a capacity of 121 keys and 470 beds.