a&o Hostels has acquired Berlin-based Schulz Hotels as part of a €500-million growth strategy. The acquisition includes the 1,000-bed Schulz Berlin hotel, which will continue to operate under the Schulz brand. The founders of Schulz—Nizar Rokbani, Oskar Kan and Sascha Gechter—will join a&o’s management and advisory team as the company explores brand extension opportunities.
The acquisition is a&o’s first platform investment under its €500 million program. The transaction supports a&o’s strategy to expand in its core markets and diversify its offering while accelerating pan-European growth. The European Hostels Market is projected to grow at a CAGR of 5.8 percent from 2025 to 2030, supported by increasing inbound tourism, a rise in budget-conscious travellers and technological advancements.
“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. Since 2024, we have deployed circa €500 million, scaling the a&o Hostels platform and leveraging the team’s unrivalled real estate, investment and hostels experience. 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,” said Oliver Winter, founder and CEO of a&o Hostels.
Schulz Hotels is a premium, design-led budget option. It caters to traditional hostel customers as well as business and individual travellers. In addition to the existing Berlin Ostbahnhof property, another Schulz hotel is planned in Berlin’s new Heide Quarter near the main train station.
The Schulz founders previously co-founded Meininger, a pan-European hotel and hostel hybrid company with more than 20,000 beds. The trio’s addition to a&o’s team will support brand and offering expansion.
“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,” said Sascha Gechter, co-founder of Meininger and Schulz.
StepStone Group and Proprium Capital Partners sponsored the management-led acquisition of a&o in 2023 and have invested about €500 million into the platform’s expansion over the past 18 months. Other acquisitions during this period include assets in London, Brighton, Brussels, Antwerp and Heidelberg.
“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, who we have known for over a decade, will allow us to redefine what affordable travel can be,” said Philipp Westermann, partner at Proprium Capital Partners.
Founded in 2000 by Oliver Winter, a&o Hostels now operates 30,000 beds across Europe. In 2024, a&o hosted 2.8 million guests and 6.2 million overnight stays. In the first half of 2025, a&o recorded 1.4 million guests, 3.1 million overnight stays and an occupancy rate of 73 percent.
