A&O Hostels has bought the freehold of two hotel assets, located on Portland and Dickinson Streets in central Manchester, from Ares Real Estate funds and EQ Group for an undisclosed amount.
The four story, adjoining properties, totalling 13,000 sqm, were previously operated under a franchise agreement with Accor, trading under its budget and mid-market hotel brands ibis and Novotel.
StepStone Group and Proprium Capital Partners sponsored the management led acquisition of a&o at the end of 2023 and together they have invested circa €500 million into the platform’s expansion over the last 18 months. Recent acquisitions have included assets in London, Brighton, Brussels, Antwerp, and Heidelberg, as well as the Schulz Hotel platform.
What they said
Oliver Winter, CEO of A&O Hostels, said: “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.”