a&o Hostels (a&o), one of Europe's largest and fastest-growing hostel chain with 31,500 beds under management, has purchased a 31,000-square-meter (333,681-square-foot) vacant office building in a prime central Berlin location, from PIMCO Prime Real Estate on behalf of Allianz. StepStone Group and Proprium Capital Partners sponsored the management-led acquisition of a&o at the end of 2023 and have invested €500 million ($586 million) into the platform’s expansion over the past 18 months.
In line with its adaptive reuse strategy, a&o will leverage its in-house development arm to undertake a €40 million ($47 million) conversion program to deliver Europe’s largest hostel, with 2,500 beds.
Located on Rudi-Dutschke-Straße, in the heart of Berlin’s Kreuzberg tourist district, the completed scheme will total 610 rooms offering a mix of private (31 percent) and shared (69 percent) space.
Checkpoint Charlie, one of Berlin’s most iconic and po
