a&o Hostels Enters Manchester Market

a&o Hostels, Europe’s largest privately owned hostel chain, has announced its entry into the Manchester market with the acquisition of two centrally located hotel properties. The former ibis and Novotel buildings, situated between Deansgate and Piccadilly, will undergo an £8.2 million refurbishment to transform into a 303-room, 1,218-bed hostel. The project is expected to be completed by early 2027, ensuring that the properties remain operational throughout.

This acquisition marks a&o’s fourth asset in the UK, increasing its European portfolio to 44 properties across 10 countries. This strategy aligns with their €500 million growth plan, driven by increasing inbound tourism and demand for affordable accommodations. CEO Oliver Winter highlighted Manchester’s vibrant tourism scene:

“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.”

The refurbished facility will feature a mix of private rooms, family rooms, and dormitories. a&o Hostels aims to capitalize on the rising trend of budget-conscious travelers and the demand for high-quality hostel assets. Over the past two years, the company has added 8,500 beds across Europe, with recent acquisitions in cities like London, Brighton, and Brussels.

Founded in 2000, a&o Hostels now manages 30,000 beds and welcomed a record 2.8 million guests in 2024. The Manchester acquisition is part of a broader strategy to extend its affordable offerings to additional cities across Europe.