Europe’s largest and fastest growing hostel chain, a&o Hostels, with 30,000 beds under management bas acquired Berlin-based Schulz Hotels.
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 per cent from 2025 to 2031.
The trio behind Schulz and leading hostels platform ‘Meininger’, Nizar Rokbani, Oskar Kan and Sascha Gechter are to remain part of the management and advisory team as a&o explores brand extension opportunities. The trio previously founded Meininger, a pan-European hotel/hostel hybrid company which now operates over 20,000 beds.
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, 1,000-bed hotel at Berlin’s Ostbahnhof, with another in the planning stage in Berlin’s new Heide Quarter, close to the main train station.
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.
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 per cent.
