Leading European hostel group a&o has made a significant step in its plans to expand, as its acquires the business of Germany’s Schulz Hotels.
Immediately, the group will benefit by adding the one existing Schulz operational property to the portfolio. The 1,000 bed Schulz Berlin in the city’s Ostbahnhof district will continue to trade under its existing brand name, the group has said. In addition, the transaction includes a pipeline hotel in the city’s Heide Quarter.
Enhancing the management team
In addition to the brand and the operational and pipeline properties, the deal also includes the management team behind Schulz. Nizar Rokbani, Oskar Kan and Sacha Gechter, who founded Schulz, will be joining the advisory and management team of a&o. As well as building Schulz, the trio previously worked together founding and building the hybrid hospitality brand Meininger, with its mix of hotel and hostel accommodation in properties across Europe.
With Schulz, the three founders have drawn on some of the Meininger model. Schulz is a premium budget accommodation concept, combining a mix of rooms that aims to attract both traditional hostel guests, who will happily share lower cost dormitory style sleeping arrangements; and also appealing to budget-oriented business travellers and guests who appreciate a private room at a great price.
Adding the Schulz business into the growth plans for a&o is a fresh direction for the hostel group. Since its buyout in 2023, investors StepStone Group and Proprium Capital Partners have supported a&o with an investment of around EUR500 million expanding the business. New hostel properties have been acquired in Antwerp, Brighton, Brussels, Heidelberg and London.
“The combined expertise of a&o and Schulz equals one hundred years of hostel experience,” said a&o founder Oliver Winter. “That is the ideal foundation for dynamic and creative growth in prime locations in European cities. With a strong group of investors behind us and a market that offers attractive opportunities, we are very well positioned to maintain this momentum in a rapidly maturing sector that benefits from clear demographic and technological trends.”
Building on record business volumes
The a&o business goes from strength to strength. In 2024, the business welcomed a record 2.8 million guests, selling 6.2 million overnight stays. Into 2025, the strong performance continued, with over 3.1 million stays recorded and 1.4 million guests welcomed, achieving a first half average hostel occupancy of 73%.
The most recent opening for a&o was a conversion property in London, bringing the brand to the UK capital for the first time. The group bought the former DoubleTree by Hilton Docklands Riverside, a hotel with 500 rooms and around 2,100 beds. The property will be refurbished in phases over the coming months, with the works representing an overall investment of around GBP21 million.
