a&o Hostels, Europe’s largest and fastest growing hostel chain with approximately 30,000 beds under management, has completed an €874 million refinancing facility provided by funds managed by Apollo (NYSE: APO), secured against its portfolio of 44 high performing hostels located across 32 of Europe’s leading business and leisure hubs. StepStone Group and Proprium Capital Partners sponsored the management led acquisition of a&o at the end of 2023, enabling a&o to undertake an initial €500 million platform expansion programme.
The senior multi-year loan replaces an existing facility with Apollo and will enable a&o to deliver on the next, €500 million phase of its ambitious growth strategy in its core markets. Over the past 24 months, the company has acquired approximately 11,500 beds, both operational and being developed / refurbished, in line with its mission to bring its budget friendly offering, targeting families, school groups and backpackers to more European cities.
Source: press release received on 14 April 2026