Major hostels group expands into Manchester with hotels acquisition
a&o Hostels, has announced the freehold purchase of two hotel assets, located on Portland and Dickinson Streets in central Manchester, from Ares Real Estate funds and EQ Group.
The four storey, 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. In a prime city-centre location between Deansgate and Piccadilly, they benefit from excellent connectivity, just 15 minutes’ walk from the main train station.
a&o Hostels will shortly progress an £8.2 million refurbishment programme across both properties to deliver a scheme comprising 1,218 beds across 303 rooms, a mix of private rooms (30%), family rooms (30%) and dormitories (40%). Works are expected to be concluded by Q1 2027, with the property remaining fully operational throughout.
Recent acquisitions by a&o have included assets in London, Brighton, Brussels, Antwerp, and Heidelberg, as well as the Schulz Hotel platform, while a near term pipeline of further transactions in other leading European cities continues to be progressed.
Oliver Winter, CEO of a&o Hostels, commented: “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.”