a&o Hostels acquires Berlin-based Schulz Hotels

European hostel chain a&o Hostels has acquired Berlin-based Schulz Hotels as part of its €500 mln growth strategy.

Schulz Hotels

a&o Hostels aims to diversify its offerings and accelerate its pan-European expansion, capitalising on strong demographic tailwinds in the European hostels market, which is projected to grow at a CAGR of 5.8% from 2025 to 2030.
The founders of Schulz Hotels—Nizar Rokbani, Oskar Kan, and Sacha Gechter, who previously co-founded Meininger (a pan-European hotel/hostel hybrid company with over 20,000 beds)—will join a&o's management and advisory team to support brand and offering expansion.
a&o has added 8,500 beds (both operational and under development/refurbishment) in the last 24 months, targeting families, school groups, and backpackers with its budget-friendly offerings. Schulz Hotels, known for its premium, design-led budget option with enhanced amenities and F&B, caters to both traditional hostel guests and more discerning business and individual travellers. It currently operates a 1,000-bed hotel at Berlin's Ostbahnhof, with another planned for Berlin's new Heide Quarter.
Founded in 2000 by Oliver Winter, a&o welcomed a record 2.8 million guests and 6.2 million overnight stays in 2024, maintaining strong momentum in H1 2025 with 1.4 million guests, 3.1 million overnight stays, and a 73% occupancy rate.
The management-led acquisition of a&o in late 2023 was sponsored by StepStone Group and Proprium Capital Partners, who have collectively invested approximately €500 mln into the platform's expansion over the past 18 months. This includes the Schulz Hotels acquisition and other assets in London, Brighton, Brussels, Antwerp, and Heidelberg, with a pipeline of further transactions in leading European cities underway.
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. 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 benefiting from compelling demographic and technological tailwinds."
Sascha Gechter, co-Founder of Meininger and Schulz, commented: "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, added: "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, whom we have known for over a decade, will allow us to redefine what affordable travel can be."