a&o Hotels and Hostels sold to new owners for EUR 800 million
a&o Hotels and Hostels is once again changing the owner of its sheets.
Dubbed the Ryanair of the hostel industry, cheap beds giant a&o is being sold to private investment firms StepStone and Proprium for EUR 800 million. The sale was recently among “encouraging” corporate transactions noted by AHV Associates, a boutique investment bank and advisor.
Owner TPG Real Estate acquired a&o’s assets, owned and leased, in 2017 for EUR 250 million. At the time of TPG’s acquisition, a&o operated 20,000 beds across 31 properties, largely in Germany and northern Europe. TPG had quoted a&o as a ‘strong operator” that was “well positioned to capitalise on favourable global and European travel trends”.
It is not clear why TPG decided to sell. a&o currently operates 39 properties, 13 of which it owns.