Hostel operator A&O has seen its revenues rise from €110m (£95.02m) to €116m (£100.2m), despite a drop in room occupancy from 74.8% to 73% in the first half of 2025.
Overall, the group recorded 3.1 million overnight stays and 1.4 million guests in H1 2025.
Its highest occupancy rate, just under 80%, was achieved between April and June. The most visited sites in Germany were in Berlin and Hamburg, while Prague, Vienna and Venice were the top international destinations.
Additionally, domestic travellers made up 53.9% of guests, down from 56.8% in 2024, with the Netherlands and the United Kingdom the largest foreign markets.
Guests from the UK accounted for 4.6% of stays, up from 4.1%, while visitors from the US rose to 4.3% from 3.4%.
Looking ahead, A&O expects summer occupancy of up to 90% and forecasts six million overnight stays for 2025.
Founder and chief executive Oliver Winter stated that he aimed to have “a property operating in every tourist metropolis in Europe and perhaps even beyond” following the company’s 25th anniversary this year.
The Berlin-based company operates 43 properties in 30 cities across 10 European countries, including recent openings in Florence and Milan.
Winter said: “We are clearly feeling the reluctance of some guests when it comes to room prices in the first half of the year, however room occupancy remains stable, with a slight decline in rates. Overall, we are very positive.
“2025 has been a year for growth as a company and our expansion is continuing to father pace and momentum. It’s a really exciting period for us and further international openings are in the pipeline.”
