A&O Hostels acquires Manchester hotels
An £8.2m refurbishment is already planned for the Ibis and Novotel hotels off Portland Street in the city centre as the European hostel chain expands into the North of England.
A&O Hostels purchased the freehold to the properties for an undisclosed sum from Ares Real Estate and EQ Group. US investor Ares had acquired the hotels as part of its £400m deal for Landsec’s hotel portfolio in 2024.
“As one of the UK’s best performing hotel markets outside of London, attracting over 1.9m visitors annually, we have long regarded Manchester as a key strategic target,” said A&O Hostels chief executive Oliver Winter.
The two adjacent buildings provide nearly 14,000 sq ft of space across their four storeys. Under the refurbishment programme, they will be transformed to offer 1,218 beds across 303 rooms. These will include a mix of private, family, and dorm spaces.
The renovation work is set to conclude in early 2027, with the hotels remaining operational throughout.
A&O has locations in London, Brighton, and Edinburgh, as well as hostels in Austria, Hungary, Italy, and Germany. The Manchester expansion is part of the group’s €500m investment programme, which saw it acquire 8,500 beds over the past two years.
Founded in 2000, the chain currently manages 30,000 beds. It welcomed 2.8m guests in 2024.
