European hostel chain a&o plans to invest approximately €500m (£427.2m) towards expansion in cities – including London – and is targeting office and retail conversions.
The Berlin budget group, founded in 2000 by Oliver Winter, currently operates 38 hostels with around 28,500 beds in 25 cities and nine European countries. Its next new location will be Florence, where it opens this summer.
Winter said key cities where it hopes to expand include opening its first London hostel, along with openings in Paris, Rome, Madrid, Lisbon, Berlin, Munich, Prague, and Amsterdam.
It is open to leasehold and ownership, and new build and conversion, but sees conversion as a key route to meet its goal of becoming Europe’s first net-zero hostel chain by 2025.
Currently, a&o’s CO2 footprint is 3.73kg per night, which it says is up to 80% lower than industry competitors.
The company had a turnover of €217m last year, on the back of 6.1m overnight stays by 2.7m guests.
Photo © a&o Hostels
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