European Hostel Chain A&O Plans to Make investments €500 Million on Growth Plans

• a&o will primarily look to transform present workplace and industrial properties into hostel lodging throughout Europe
• Firm units sights on important progress with a&o Florence on schedule to open this summer season
• Founder reveals plan for flexibility on property contracts throughout leasehold and possession

Main European hostel chain a&o will make investments roughly 500 million euros in the direction of firm enlargement, with the conversion of present workplace and retail properties into lodging earmarked as a key space for progress. Founder and CEO Oliver Winter has expressed a flexibility as regards to property contracts: “Whether or not lease or possession, new construct or conversion, our property enlargement covers all kinds of property varieties. We’re versatile and we need to develop”, he mentioned.

When in comparison with the development of a brand new constructing, a&o sees property conversion as a key enabler for the discount of CO2 emissions, contributing to the objective of turning into Europe’s first web zero hostel chain by 2025. Based on consultants, the financial savings are equal to the CO2 emissions of as much as 30 years of operation. Presently, a&o’s CO2 footprint is 3.73 kilograms per night time, which is as much as 80 p.c decrease than trade opponents.

The corporate’s newest property, a&o Florence, is one other profitable instance of the corporate’s observe file in workplace conversions and can provide 470 beds in strolling distance of Piazza del Duomo within the historic metropolis centre.

Winter has additionally introduced plans to take a look at increasing a&o’s hostel presence throughout Europe in key areas reminiscent of London, Paris, Rome, Madrid, Lisbon, Berlin, Munich, Prague, and Amsterdam. Winter has revealed the corporate is already engaged in some thrilling negotiations, and a&o executives will likely be at MIPIM (Cannes, 12-15 March) this week with the target of accelerating their enlargement.

Presently, a&o’s 38 hostels in 25 cities and 9 9 European international locations have one factor in frequent: a central location that’s simply accessible by public transport. As well as, the conversion of former workplace and industrial properties offers the areas a person character: “We’re very versatile when it comes to measurement and ground plans, which provides us a head begin and makes it simpler and sooner to implement” says Winter.

a&o Hostels is benefiting from the momentum of an exceptionally sturdy efficiency in 2023, with 6.1 million in a single day stays, 2.7 million friends and a turnover of 217 million euros. The journey trade’s resurgence, as highlighted by this 12 months’s ITB in Berlin, signifies a sustained improve in journey curiosity, with summer season bookings already exceeding pre-pandemic ranges of 2019.