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Schulz Hotel Berlin Wall – Image Credit a&o Hostels
a&o Hostels has acquired Schulz Hotels as part of its €500 million growth strategy to expand its presence in Europe.
a&o Hostels, a major player in the European hostel market, has acquired Schulz Hotels, a Berlin-based company. This acquisition is part of a larger €500 million investment strategy to expand a&o’s operations across Europe. The acquisition is expected to support a&o’s growth in its core markets and diversify its offerings.
Schulz Hotels, which currently operates a 1,000-bed facility at Berlin’s Ostbahnhof, will be integrated into a&o’s existing network. A second Schulz location is planned for Berlin’s Heide Quarter, near the central train station. The founders of Schulz Hotels, Nizar Rokbani, Oskar Kan, and Sacha Gechter, will join a&o’s management and advisory team to assist with brand and offering expansion.
In the past 24 months, a&o has acquired 8,500 beds across 8 transactions, including both operational and under-development properties. This move aligns with a&o’s strategy to cater to budget-conscious travelers, including families, school groups, and backpackers, by expanding its presence in European cities.
The European hostel market is projected to grow at a compound annual growth rate (CAGR) of 5.8% from 2025 to 2030, driven by rising tourism, increased budget travel, and technological advancements. a&o aims to capitalize on these trends by expanding its operations.
The acquisition of Schulz Hotels follows a series of investments by a&o, including properties in London, Brighton, Brussels, Antwerp, and Heidelberg. The company continues to explore further transactions in other major European cities.
The acquisition was supported by StepStone Group and Proprium Capital Partners, who sponsored a management-led acquisition of a&o at the end of 2023. Together, they have invested approximately €500 million into a&o’s expansion over the last 18 months.
a&o Hostels reported welcoming 2.8 million guests and 6.2 million overnight stays in 2024, with continued momentum in the first half of 2025. The company recorded 1.4 million guests, 3.1 million overnight stays, and an occupancy rate of 73% during this period.
