a&o Hostels acquires Schulz Hotels as part of €500 million growth strategy

The trio behind Schulz and the leading hostel platform Meininger – Nizar Rokbani, Oskar Kan and Sascha Gechter – will remain part of the management team, while a&o looks for new expansion opportunities.

The acquisition includes the premium budget hotel Schulz Berlin, with 1,000 beds, which will continue to operate under the Schulz brand.

a&o Hostels, Europe's largest and fastest-growing hostel chain with 30,000 beds under management, has acquired Berlin-based Schulz Hotels.

With this step, a&o aims to further strengthen its position in core markets and expand its offering to accelerate European growth. The company is responding to clear market trends, including increasing inbound tourism, a growing number of price-conscious travellers and technological developments. The European hostel market is expected to grow at a compound annual growth rate of 5.8 per cent between 2025 and 2030 (Grandview Research, 2025).

Schulz founders strengthen the a&o team

The founders of Schulz, Nizar Rokbani, Oskar Kan and Sacha Gechter, are joining the management and advisory team at a&o as the company works to expand its brand and offering. The trio previously founded Meininger, a European hotel-hostel concept that now has more than 20,000 beds.

Schulz Hotels is a premium budget concept with a strong design, extensive facilities and an attractive F&B offering. It targets traditional hostel guests, but also business travellers and individual guests looking for a little more comfort. The company currently operates one hotel with 1,000 beds at Ostbahnhof in Berlin and is working on a second location in the new Heide Quarter in the German capital, close to the central station.

a&o continues to expand

a&o is successfully implementing its growth strategy by bringing its budget-friendly offerings for families, school groups and backpackers to more European cities. Over the past 24 months, a&o has acquired 8,500 beds, both operational and under development or renovation.

a&o was founded in 2000 by Oliver Winter and has since become one of the largest budget hostel chains in the world. In 2024, a&o Hostels welcomed a record number of 2.8 million guests and 6.2 million overnight stays. This growth continued in the first half of 2025, with 1.4 million guests, 3.1 million overnight stays and an occupancy rate of 73 per cent.

StepStone Group and Proprium Capital Partners supported the management-led acquisition of a&o at the end of 2023. Together, they have invested approximately €500 million in expanding the platform over the past 18 months. In addition to Schulz Hotels, a&o has purchased properties in London, Brighton, Brussels, Antwerp and Heidelberg, among other locations. The company is also working on a growing list of new acquisition opportunities in other major European cities.

Vision for our shared future

Oliver Winter, founder and chief executive officer of a&o Hostels, stated: “The combined expertise of a&o and Schulz equates to a hundred years of hospitality experience. This provides the ideal foundation for dynamic and creative growth in prime locations across European cities. Since 2024, we have invested approximately €500 million in scaling up the a&o Hostels platform. With a strong investor group behind us and a market offering attractive opportunities, we are excellently positioned to maintain this momentum in a rapidly maturing sector that is benefiting from clear demographic and technological trends.”

Sascha Gechter, co-founder of Meininger and Schulz, adds: “We are delighted to join forces with a&o and take the growth of Schulz Hotels to the next level. Our collaboration is a perfect fit; we share the same values, target groups and ambitions. There are significant synergies in the areas of purchasing, sales and technology, which will benefit both brands.”

Philipp Westermann, Partner at Proprium Capital Partners, stated: “The acquisition of SchulzHotels by a&o Hostels represents an important step in strengthening our strategic position in key European markets. The collaboration with the founders of Schulz, whom we have known for over ten years, enables us to redefine what affordable travel can be.”

Source: https://www.grandviewresearch.com/horizon/outlook/hostel-market/europe