a&o Hostels expands into Manchester

European hostel chain a&o Hostels has acquired two hotel properties in central Manchester from Ares Real Estate funds and EQ Group. 

Manchester a&o hotels

The 13,000 m2 properties, formerly ibis and Novotel hotels, located on Portland and Dickinson Streets in central Manchester, will undergo an £8.2 mln (€9.6 mln) refurbishment to create a 1,218-bed hostel with private rooms, family rooms, and dormitories.
In a prime city-centre location between Deansgate and Piccadilly, they benefit from excellent connectivity, just 15 minutes’ walk from the main train station.
The refurbishment is expected to be completed by Q1 2027, with the hostel remaining operational throughout. 
This acquisition is part of a&o's €500 mln investment program to expand its presence in key European markets, driven by the growing demand for budget-friendly accommodation among families, school groups, and backpackers. 
Recent acquisitions have included assets in London, Brighton, Brussels, Antwerp, and Heidelberg, as well as the Schulz Hotel platform, while a near term pipeline of further transactions in other leading European cities continues to be progressed.
Oliver Winter, CEO of a&o Hostels, commented: "As one of the UK’s best performing hotel markets outside of London, attracting over 1.9 million visitors annually, we have long regarded Manchester as a key strategic target, and are therefore really pleased that we can now establish a significant footprint through this freehold acquisition. The transaction concludes a highly successful year for a&o Hostels, which has seen us deliver c. 5,500 new beds across four new cities, as well as bring the Schulz Hotel platform into our group.”