UK: Hostel chain a&o has bought two adjoining accommodations on Portland and Dickinson Streets in central Manchester from Ares Actual Property funds and EQ Group.
The branded properties – an ibis and Novotel – had been operated underneath a franchise settlement with Accor.
a&o plans to take a position $8.2 million throughout each websites to ship 1,218 beds throughout 303 rooms, together with a mixture of non-public, household, and dorm room varieties. Works are anticipated to complete by Q1 2027, with the property remaining totally operational all through.
It marks the fourth UK asset for a&o, becoming a member of the current buy of the model’s first website in London.
Over the previous 24 months, a&o has acquired 8,500 beds, each operational and being developed or refurbished, throughout Europe.
Oliver Winter, CEO of a&o Hostels, stated: “As one of many UK’s greatest performing resort markets outdoors of London, attracting over 1.9 million guests yearly, we now have lengthy regarded Manchester as a key strategic goal, and are subsequently actually happy that we will now set up a major footprint by this freehold acquisition.
“The transaction concludes a extremely profitable 12 months for a&o Hostels which has seen us ship circa 5,500 new beds throughout 4 new cities, in addition to carry the Schulz Resort platform into our group.”
Highlights:
- a&o Hostels has acquired two adjoining accommodations in central Manchester from Ares Actual Property funds and EQ Group.
- The belongings comprise an ibis and a Novotel, previously operated underneath Accor franchise agreements.
- a&o will make investments $8.2 million to transform the websites right into a 1,218-bed hostel throughout 303 rooms.
- The scheme will embody non-public, household and dorm-style lodging.
- Works are as a consequence of full by Q1 2027, with the accommodations remaining operational all through.
- The acquisition marks a&o’s fourth UK asset and first entry into Manchester.
