After opening new hostels in Brighton (August 2024), Antwerp (October 2024), and Brussels (December 2024), a&o Hostels, Europe's largest hostel chain, is expanding further with the acquisition of a&o Heidelberg. This marks its 43rd property in Europe and 26th in Germany. The company operates 42 properties across ten countries, with 19 owned directly by a&o.

The a&o Heidelberg will be a new five-storey building, with 118 rooms and 320 beds. Scheduled for opening at the end of 2026, construction work will be starting in spring 2025. The associated property at Speyerer Strasse 5 was acquired from BHB Heidelberg GmbH, a subsidiary of Heureka Real Estate GmbH, as part of a forward sale.

Together with its owners, Proprium Capital Partners and StepStone Group, a&o has over 500 million euros available to invest in the expansion, conversion and modernization of existing and new properties.

Oliver Winter, CEO and Founder of a&o Hostels, said: "Last year, we set out some of our goals for a carefully accelerated growth strategy across 2024 and beyond, and with four new great locations acquired in just six months, we are well positioned to deliver on these."

Philipp Westermann, Partner at Proprium Capital Partners, said: "We remain very confident in the huge opportunities for continuing long-term growth at a&o Hostels across Europe, which we look forward to continuing to support. a&o Hostels has a best-in-class business and brand, with enormous further potential that a&o are well on track to delivering on."

"Germany remains a very exciting market"

With a population of 162,000, the city on the Neckar is considered one of the most beautiful cities in Germany and attracts approximately 14 million visitors every year.

"Heidelberg has been a dream location for a long time, so we are delighted with this acquisition", said Winter.

Robert Waidhaas, Managing Partner of Heureka Real Estate, adds: "We are delighted to realize this ambitious project together with an experienced partner like a&o and to contribute to the revitalization of Heidelberg's Weststadt."

Expansion across key cities in Europe

a&o has a strong and growing pipeline of attractive hostel investment opportunities across Europe and the UK. In February this year, a&o Firenze Campo di Marte (Florence) will be the second hostel to open in Italy with 121 rooms in a former municipal administration building,

In line with its sustainability drive, a&o predominantly seeks existing buildings to convert into hostels such as former office and commercial properties. In addition to ownership, renting also remains an attractive option emphasises Winter: "With the support of our owners, we now have the firepower to accelerate our expansion in key locations across gateway cities in Europe. We are really well positioned to take advantage of the significant opportunities we see in this hugely attractive and dynamic market environment and to take our budget hostel product to a new level."

Hotel website

a&o Hostels
a&o Heidelberg
Speyerer Str. 5
Heidelberg, 69115
Germany
Hotel Website