a&o Hostels Expands with Acquisition of Two Resort Properties in Manchester – Picture Credit score a&o Hostels
a&o Hostels has bought two resort properties in Manchester and plans to transform them into hostel lodging by 2027.
a&o Hostels has acquired two resort properties in central Manchester, marking its enlargement within the UK market. The properties, positioned on Portland and Dickinson Streets, had been bought from Ares Actual Property funds and EQ Group. Beforehand operated underneath Accor’s ibis and Novotel manufacturers, the buildings will bear a £8.2 million refurbishment.
The properties, totaling 13,000 sq. meters, are located between Deansgate and Piccadilly, roughly a 15-minute stroll from Manchester’s essential prepare station. The refurbishment goals to create 1,218 beds throughout 303 rooms, together with personal rooms, household rooms, and dormitories. The renovation is anticipated to be accomplished by the primary quarter of 2027, with the properties remaining operational all through the method.
This acquisition is a part of a&o Hostels’ broader development technique, which includes a €500 million funding program. The corporate goals to capitalize on the rising demand for price range lodging pushed by inbound tourism and budget-conscious vacationers. The European hostel market is projected to develop at a 5.8% compound annual development price from 2025 to 2030.
Previously 24 months, a&o Hostels has acquired 8,500 beds by varied acquisitions and refurbishments. Current expansions embody properties in London, Brighton, Brussels, Antwerp, and Heidelberg, in addition to the acquisition of the Schulz Resort platform. The corporate continues to discover alternatives for additional transactions in different main European cities.
The management-led acquisition of a&o Hostels by StepStone Group and Proprium Capital Companions in late 2023 has enabled the corporate’s enlargement. Roughly €500 million has been invested within the platform’s development during the last 18 months.
Manchester is taken into account a key strategic location for a&o Hostels, given its standing as one of many UK’s top-performing resort markets exterior of London. The town attracts over 1.9 million guests yearly, together with worldwide vacationers, home vacationers, and pupil teams. The demand is fueled by occasions resembling Premier League soccer matches, music occasions, and varied cultural and enterprise actions.
The Manchester acquisition concludes a 12 months of great development for a&o Hostels, which added roughly 5,500 new beds throughout 4 new cities and built-in the Schulz Resort platform into its operations.
