A&o Hostels has acquired two adjoining hotel properties in central Manchester as part of its European expansion and £500 million growth strategy.

The group purchased the freehold of two four‑storey hotels on Portland and Dickinson Streets, previously operated under Accor franchises as an ibis and a Novotel. The site is strategically located between Deansgate and Piccadilly, approximately a 15‑minute walk from Manchester’s main rail station, offering strong transport links and year‑round demand.

a&o plans an £8.2 million refurbishment of both buildings, which will remain operational throughout the works. The combined property will be converted into a&o’s hybrid hostel/hotel concept, ultimately providing 303 rooms and around 1,218 beds. The accommodation mix will include roughly 30% private rooms, 30% family rooms, and 40% dormitories, catering to families, school groups, backpackers, and other cost-conscious travellers.

This acquisition marks A&o’s fourth UK property and expands its European portfolio to over 40 locations across multiple countries. The move aligns with the company’s broader strategy to invest hundreds of millions of euros into high-demand, budget-friendly accommodation in major metropolitan cities.

Manchester is one of the UK’s strongest hotel markets outside London, welcoming approximately 1.9 million visitors annually across tourism, events, football, business, and cultural activities. The city’s diverse mix of tech, media, sports, and music sectors provides resilient demand for affordable accommodation, which A&o aims to capture with its centrally located, large-scale property.