a&o Hostels to Acquire First London Hotel with Takeover of Former DoubleTree by Hilton

• a&o Hostels, Europe’s largest private hostel group, acquires London’s former DoubleTree Docklands Riverside for its first city hotel, investing £21M in renovations.

• The 500-room, 2,100-bed property will target value-seeking solo travelers and families, while supporting a fully electric Thames river boat service.

 

Wednesday October 1st, London: Europe’s largest independently owned hostel chain, a&o Hostels, has announced the landmark acquisition of the former DoubleTree by Hilton, Docklands Riverside, marking the opening of its first London property and their third in the UK. The new a&o London Docklands Riverside will operate as a hotel, demonstrating the hostel groups expansion in the hospitality industry. The new venue will officially open under the a&o flag in November, with bookings already available through a&o’s official channels. 

 

The former 17th-century dockland building is located directly opposite Canary Wharf on the banks of the Thames in the Southwark district. The building has its own pier, and a&o Hostels will provide free access for guests to an electric river cab service to and from Canary Wharf – offering easy access to Tower Bridge, Buckingham Palace and beyond. a&o London Docklands Riverside is also less than a mile walk from Canary Wharf London Underground which offers great connectivity via the Elizabeth Line 

 

With 500 rooms and 2,100 beds, the new a&o London Docklands Riverside will also receive a gradual refurbishment with an investment of £21 million (approx. €25 million) while remaining open for guests throughout the process. The parties have agreed not to disclose the purchase price. 

 

London is one of the world’s most important commercial, financial and cultural centres in the world with an abundance of diverse attractions such as the Tower of London and UNESCO World Heritage Site Westminster Palace.  The hotel acquisition demonstrates the group’s strategic growth, with London being the third location in the UK, after Edinburgh and Brighton.  

 

Speaking on the announcement, a&o Hostels Founder and CEO Oliver Winter said: “London is simply a city you have to experience. It represents a deep history, a fierce energy and an incredible internationalism rarely found elsewhere. The opening of our first location here is a real statement for a&o, as a leading destination for travellers, families, school groups and groups of friends. It was at the top of our list as we look to provide value driven accommodation to youth travellers, groups, families and solo guests in an otherwise expensive city.” 

 

“This acquisition is the result of an intensive and purposeful selection process. It signals that a&o is present at the highest level – in the best cities in Europe, with strong partners and a clear focus on sustainable growth,” he added. 

 

a&o London – the highlights at a glance  

From January 2026, the three building complexes of the original 17th century port building will be gradually converted and modernized during ongoing operations. The investment amounts to approximately £21 million, or €25 million. 

 

 The highlights of the new a&o location include: 

•   Natural light and an en-suite bathroom in each room

o    Each room will have natural daylight and a private bathroom  

•   Electric river cab

o   Running between Canary Wharf, the river cab will transport a&o guests free of charge every ten minutes  

•   Categories and guest mix:

o    A variety of double, family and multi-bedrooms will cater to a diverse guest base  

•   Less than one mile walk from Canary Wharf London Underground station with access to the Elizabeth Line and Jubilee Line which also offers access to landmark attractions such as Buckingham Palace and Big Ben
•   30 minutes from London City Airport
•   Riverside Bar with unparalleled views of the city skyline for guests to unwind
•   Underground car parking

o   Approximately 50 parking spaces in the underground car park allow customers to have flexible travel options into the city 

 

Currently 44 locations and millions more invested in growth 

Together with owners StepStone Group and Proprium Capital Partners, a&o Hostels announced a budget of €500 million for expansion, conversion and modernisation of its properties to be carried out from Spring 2024. The Berlin-based company has secured six new locations, including Milan. Further target cities include Glasgow, Dublin, Manchester, Paris, Madrid and Lisbon. 

 

The company was founded in 2000 by Oliver Winter and with the opening of a&o London, the number of locations increases to 44 properties in 30 cities and ten European countries – with a total of around 30,000 beds. The core target groups include families (15%), school groups (38%) and clubs as well as individual city travellers.  

 

In 2024, a&o Hostels recorded 2.8 million guests and 6.2 million overnight stays. According to preliminary figures, more than 1.15 million guests have already chosen a&o in 2025, with around 2.6 million overnight stays in the period from January to May. 

  

About a&o Hostels

Founded in 2000 by Oliver Winter, a&o Hostels currently operates 44 properties with around 30,000 beds in 29 cities across 11 European countries. A further two properties are set to open in the near future. The a&o Hostels guest mix is diverse, welcoming backpackers, solo travellers, families, school groups, and associations. The number of business travellers and senior guests is also increasing. In 2024, a&o Hostels achieved a record company performance, surpassing the record set in the previous year. Demonstrating strong year-on- year-growth, a&o recorded 6.2 million overnight stays (2023: 6.1 million), 2.8 million guests (2023: 2.7 million), and £192.7 million in revenue (2023: £179.9 million).  

  

For more information, visit www.aohostels.com. 

 

About Proprium Capital Partners

A spin out of the Morgan Stanley Real Estate Special Situations team, the Proprium principals have been investing in real estate operating companies since 1996, focusing on scalable themes with experienced local partners and platforms. Proprium’s strategy of platform investing seeks to deliver private equity returns in the real estate industry. Proprium manages funds on behalf of institutional investors across the globe, including government and private sector pension and retirement funds, banks, family offices and sovereign wealth funds. Today, Proprium has grown to over USD$3.5 billion of net assets under management with a global platform of six offices across the US, Europe, and Asia Pacific. Further information can be found at www.proprium.com. 

 

About StepStone Real Estate

StepStone Real Estate (“SRE”) is a global private markets investment firm that provides liquidity solutions to real estate managers. In 2024, SRE held more than 1,000 manager meetings and oversaw approximately $16 billion of real estate commitments across funds, secondaries, recapitalizations, and co-investments. As of March 31, 2025, SRE was responsible for over $189 billion in total capital allocations, including $19 billion in assets under management. The SRE Partners bring deep expertise, averaging over 24 years of experience in direct real estate investment and advisory services through multiple market cycles. SRE comprises a global team of over 72 investment professionals that provide clients with an “on-the-ground” presence across North America, Europe and Asia.