UK: Hostel chain a&o has purchased two adjoining hotels on Portland and Dickinson Streets in central Manchester from Ares Real Estate funds and EQ Group.
The branded properties – an ibis and Novotel – were operated under a franchise agreement with Accor.
a&o plans to invest $8.2 million across both sites to deliver 1,218 beds across 303 rooms, including a mix of private, family, and dorm room types. Works are expected to finish by Q1 2027, with the property remaining fully operational throughout.
It marks the fourth UK asset for a&o, joining the recent purchase of the brand’s first site in London.
Over the past 24 months, a&o has acquired 8,500 beds, both operational and being developed or refurbished, across Europe.
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 circa 5,500 new beds across four new cities, as well as bring the Schulz Hotel platform into our group.”
Highlights:
- a&o Hostels has acquired two adjoining hotels in central Manchester from Ares Real Estate funds and EQ Group.
- The assets comprise an ibis and a Novotel, formerly operated under Accor franchise agreements.
- a&o will invest $8.2 million to convert the sites into a 1,218-bed hostel across 303 rooms.
- The scheme will include private, family and dorm-style accommodation.
- Works are due to complete by Q1 2027, with the hotels remaining operational throughout.
- The acquisition marks a&o’s fourth UK asset and first entry into Manchester.
