a&o Hostels, a European hostel chain with approximately 30,000 beds under management, has completed an €874 million ($1 billion) refinancing facility provided by funds managed by Apollo, 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 ($589 million) platform expansion program.
The senior multi-year loan replaces an existing facility with Apollo and will enable a&o to deliver on the next, €500 million ($589 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
