Conversions, capital and the uncomfortable truth about the middle
Coming from DNA Hotels and NOW Hotels, hostels are not my natural habitat. I value space, calm, design restraint — preferably without bunk beds. Yet some of the most interesting thinking in hospitality today comes from concepts that sit far outside one’s personal taste. a&o is firmly in that category.
What fascinates me is not the product itself, but the clarity of strategy: decisive growth at the budget end, powered by conversions, and executed at a moment when large parts of Europe’s mid-market hotel stock are quietly struggling to justify their positioning.
At the end of 2023, a&o completed a management-led acquisition, sponsored by StepStone Group and Proprium Capital Partners. Since then, the shareholders have committed approximately €500 million to expansion over an 18-month period. That is not opportunistic capital — it is a war chest.
Crucially, a&o itself frames the current environment as one of “market dislocation”. In other words: pricing, positioning and performance have drifted apart, creating opportunities for those willing to act decisively. This aligns perfectly with where we are seeing growth today — not in the muddled middle, but at the value and budget end, where conversions, simplification and operational fixes can move the needle quickly.
Their own expansion criteria make this explicit. a&o is pursuing growth through leases and acquisitions, with a strong focus on existing hotels — ranging from budget to midscale and even upscale — as well as non-hotel buildings suitable for conversion. New-builds exist, but they are the exception rather than the rule. The core thesis is clear: reuse what already exists, reset expectations, and realign economics.
Budget and luxury thrive — the middle increasingly drifts
Luxury succeeds when it is truly distinctive. Budget succeeds when it is brutally honest.
The middle — full-service, four-star, but forgettable — increasingly struggles, particularly in secondary locations, transport hubs, or oversupplied city centres.
a&o’s expansion reads like a tour of this vulnerable middle ground: ibis, Novotel, Best Western, DoubleTree by Hilton, Radisson Blu — all respected names, yet often offering little more than “acceptable” experiences at prices that feel out of sync with guest expectations.
Conversion as a strategy, not a coincidence
Rotterdam
A 118-room, former Best Western-affiliated four-star hotel. Entirely serviceable — and precisely the type of asset that struggles to stand out in a competitive market. As a&o, the expectations reset, and the economics suddenly align.
Antwerp
The former Tourist Hotel, near Antwerp Central Station. I once stayed here and remember little — except sharing a six-bed room with a friend. That, in itself, says something. The area is classic “European main station”: slightly seedy, oversupplied with hotels, yet anchored by one of the most breathtaking stations in Europe — part cathedral, part palace.
Ironically, this is exactly where I would love to get my hands on the 1970s Plaza Hotel (now Leonardo) or the Radisson Blu Hotel Antwerp City Centre (opened in 1997, designed by Michael Graves) (also stayed there). Both need serious TLC.
Berlin
The Berlin Wall location — formerly part of the Schulz Hotels portfolio — comprises 1,000 rooms in a single building. Interestingly, this property sits slightly more upscale than the classic a&o formula, suggesting flexibility rather than dogma. It also reinforces the sense that a&o is building a platform, not just adding beds.
Heidelberg (opening 2026)
One of the rare new-builds in the portfolio. Its very exceptionality underlines the rule: conversion remains the preferred growth engine.
Brussels
The former President Hotel (also once affiliated with Best Western), located near Brussels North Station — an area long considered rough around the edges. Rooms are being expanded from 296 to 377, and I suspect traditional meeting space quietly gives way to higher-yield accommodation.
The open question — and one that should spark debate — is whether ongoing upgrades to the WTC complex and projects like The Standard Hotel will truly shift the perception of this district, or merely polish its edges.
Florence – Campo di Marte
A former municipal administration building, converted into 121 rooms. This is not romantic adaptive reuse — it is pragmatic. A utilitarian civic structure finds a new life in utilitarian tourist use. Honest, efficient, and arguably more credible than forcing a boutique narrative onto bureaucratic architecture.
London Docklands – Riverside
Not the most compelling location London has to offer — but Thames views help. Originally the Scandic Crown (1991), later absorbed by Hilton, then repositioned as a DoubleTree by Hilton — arguably a downgrade rather than an upgrade.
Today, 500 rooms become 2,100 beds. And again, the question writes itself: why pay Hilton prices here for something unremarkable, when a&o prices reflect the reality of the location?
Manchester
Formerly a double-branded Novotel / ibis. The definition of middle-of-the-road. As a&o, the city-centre location finally works to the asset’s advantage.
Brighton
Originally the 1819 Royal York Hotel — a historic property that, ideally, should have remained a hotel. Over time it became offices, then Radisson Blu, then vacant, then a youth hostel, and now a&o.
This is less a story of destiny than of compromise: heritage meeting economics, with preservation losing to pragmatism.
Milan
Formerly an ibis. A neat summary of the broader thesis.
The uncomfortable conclusion
ibis. Novotel. DoubleTree by Hilton. Best Western. Radisson Blu.
All credible brands — yet, in certain locations, increasingly better suited to hostel economics than to four-star promises.
a&o’s success lies in its refusal to pretend otherwise. It strips buildings back to what they can realistically deliver: beds, location, efficiency, price transparency.
I may never become an a&o guest. But as a hotel professional, I find their clarity both refreshing — and quietly unsettling for the rest of the industry.
DOUBLEDOWN Hotels 
Leave a comment