a&o Hostels acquires Schulz Hotels as part of €500 million growth strategy

Berlin, 10 December 2025 – a&o Hostels (a&o), Europe's largest and fastest-growing hostel chain with 30,000 beds under management has acquired Berlin-based Schulz Hotels (Schulz).

The acquisition will support a&o's growth strategy in its core markets and enable it to further diversify its offering as it looks to accelerate its pan-European growth ambitions. a&o seeks to continue capitalising on the compelling demographic tailwinds driving the rapid growth of what has become an increasingly institutional-quality asset class. Underpinned by increasing inbound tourism, a rise in budget-conscious travellers and technological advancements, the European Hostels Market is projected to grow at a CAGR of 5.8% from 2025 to 2030.

The founders of Schulz – Nizar Rokbani, Oskar Kan and Sacha Gechter – are joining the a&o management and advisory team as it plans a brand and offering expansion. The trio previously founded Meininger, a pan-european hotel / hostel hybrid company which now operates over 20,000 beds.

a&o has been successfully executing on its growth strategy to bring its budget friendly offering targeting families, school groups and backpackers to more European cities by acquiring 8,500 beds, both operational and being developed / refurbished, over the past 24 months.

Schulz Hotels is a premium, design led budget option with an elevated amenity and F&B offering that caters to the traditional hostel customer as well as more discerning business and individual travellers. It currently operates as a single, 1000-bed hotel at Berlin's Ostbahnhof, with another in the planning stage in Berlin's new Heide Quarter, close to the main train station.

Founded in 2000 by Oliver Winter, a&o is now one of the largest budget hostel chains in the world. 2024 saw a&o Hostels welcome a record 2.8 million guests and 6.2 million overnight stays. This momentum was sustained in the first half of 2025, with a&o recording 1.4 million guests, 3.1 million overnight stays, and an occupancy rate of 73 percent.

StepStone Group and Proprium Capital Partners sponsored the management led acquisition of a&o at the end of 2023 and together they have invested circa €500 million into the platform’s expansion over the last 18 months. As well as Schulz Hotels, other acquisitions have included assets in the London, Brighton, Brussels, Antwerp, and Heidelberg, while a near term pipeline of further transactions in other leading European cities continues to be progressed.

Oliver Winter, founder and CEO of a&o Hostels said: "The combined know-how of a&o and Schulz amounts to 100 years of hostel expertise – the perfect prerequisite for further dynamic and creative growth in prime locations in European cities."

"Since 2024 we have deployed circa €500 million scaling the a&o Hostels platform and leveraging the team’s unrivalled real estate, investment and hostels experience. With a supportive investor base, and ongoing market dislocation presenting attractive investment opportunities, we are well placed to maintain this momentum in a rapidly maturing sector benefitting from compelling demographic and technological tailwinds."

Sascha Gechter, Co-Founder of Meininger and Schulz, added: "We are delighted to join forces with a&o and take the expansion of Schulz Hotels to the next level. Our partnership is complementary – we share values, target groups, and ambitions. Enormous synergies are emerging in purchasing, sales, and technology, from which both brands will benefit."

Philipp Westermann, Partner at Proprium Capital Partners, said: "a&o Hostels' acquisition of Schulz Hotels marks the latest milestone in our drive for strategic growth across key European markets. Joining forces with the Schulz founders, who we have known for over a decade, will allow us to redefine what affordable travel can be."