a&o Annual Report 2024: Consistent growth across guest numbers, revenue, overnight stays, and new openings as company celebrates record performance

Berlin, 4^th March 2024 – a&o Hostels, Europe's largest hostel chain, delivered a record company performance for 2024, 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).

In addition to an increase in revenue, guest numbers, and overnight stays, a&o opened three new locations in 2024 to support an exceptional year for the company, including properties in Brighton, Antwerp, and Brussels. a&o also officially opened a&o Firenze Campo di Marte in Florence this February and announced the planned construction of the new a&o Heidelberg to drive further growth.

"2024 represented steady growth and has surpassed the record results of 2023 to make this the best performance in our history. As we celebrate our 25th anniversary in 2025, a&o has entered the year strongly and confidently and we remain really well placed to create and deliver long-term sustainable growth", said a&o founder and CEO Oliver Winter.

The Berlin headquartered budget chain celebrates its 25th anniversary in 2025, having opened its first hostel in Berlin Friedrichshain in spring 2000. Today, a&o employs across Europe over 1,000 staff members from more than 50 nations.

"A quarter-century of a&o is not just about growing to 42 locations since 2000. We have evolved and created a budget product that is attractive to both travellers and investors, elevating it to a new level", said Winter.

£414.6 Million for Further Growth in Europe

In collaboration with owners StepStone Group and Proprium Capital Partners, a&o is investing £414.6 million in expansion, renovation, and modernization.

Philipp Westermann, Partner at Proprium Capital Partners, states: "We look forward to continuing to support a&o Hostels' significant further long term growth potential, which a&o is well positioned to deliver on as the best-in-class business and brand in the sector."

European metropolitan areas and popular destinations remain the primary focus for expansion. The newest project, a&o Heidelberg, will feature 118 rooms in a five-story building. The site has been acquired and construction will begin in spring 2025, with the opening planned for late 2026.

Trends and Perspectives

Group travellers remain a&o's core target audience, making up 38% of the guest share. With extensive website optimizations improving group bookings, 40% of group bookings now occur directly through a&o, with an average stay of three nights. The average stay for individual travellers slightly decreased from 1.9 to 1.8 nights in 2024. The Mobile Key's adoption is growing, with 5% of guests using their phone as a room key for the first time in 2024.

Key statistics:

• Group overnight stays: 37.8% of total share
• Chatbot sessions: 142,023 (significant growth from 85,000 in 2023)
• App downloads: 450,000 (2023: 250,000)
• a&o Club memberships:  ca. 200,000 by year-end
• Overnight stays in female dorms: 112,000 (2023: 95,000)

Sustainability Remains a Key Focus

Following ten years of continuing sustainability commitments and work, in which a&o reduced carbon emissions per overnight stay by 78%, the company continues to push for eco-friendly initiatives. CEO Oliver Winter emphasizes: "We are strengthening our commitment and making targeted internal sustainability investments." The focus is on direct investments rather than outsourced compensation measures, including:

• Increased use of green electricity
• Reduction of food waste
• Optimized supply chains
• Greater social and cultural engagement

Educational initiatives like a&o educare and art&o will be further expanded, with independent audits and certifications intensified. The internal ESG task force continues its efforts, and Winter said: "Everyone can and should contribute to integrating sustainability into every activity. This ensures that travel remains accessible and affordable in the future with a positive impact."

Direct Bookings, Occupancy Rates, and Top Locations

"Everyone can travel" has been a&o's guiding principle since its founding, making affordable travel accessible to all. The average age of a&o guests is 18-24 years, and nearly 50% of bookings are made directly through a&o's channels. The a&o app has seen the highest growth among booking channels, with 70% of online direct bookings made via smartphones.

Top-performing locations:

• Highest occupancy: a&o Köln Dom, which also commands the highest daily rates.
• Next in ranking: a&o Berlin Mitte and a&o Edinburgh City.
• Guest origin in 2024: 50% from Germany, followed by Poland, Austria and Denmark.
• International guest mix: 46.3%, reflecting that over half of all guests travel domestically.