Berlin, March 4, 2026 – Berlin is poised to welcome Europe’s largest hostel, a significant tourism project slated for completion by 2027. The budget hostel chain a&o Hostels announced plans to convert a former office building near the iconic Checkpoint Charlie in Berlin-Kreuzberg into a facility offering approximately 2,500 beds.
Major Investment in Berlin’s Tourism Sector
The project, located on Rudi-Dutschke-Straße, will see the transformation of a vacant 31,000-square-meter office building. a&o Hostels plans to invest around 40 million euros into the renovation and redesign of the property. The opening is currently scheduled for the first quarter of 2027.
Upon completion, the hostel will feature approximately 610 rooms. A significant portion of these will be classic multi-bed dormitories, typical for hostels, complemented by double and family rooms. This diverse offering aims to cater to a wide range of travelers, including backpackers, youth groups, families, and budget-conscious city tourists.
Strategic Location and Expanding Presence
The chosen location is considered highly strategic, situated just a few steps from the former Checkpoint Charlie border crossing and close to major transportation hubs. This area is one of Berlin’s most frequented tourist districts.
This new establishment will mark a&o Hostels’ fifth location in the German capital, significantly expanding its presence. With this addition, the brand’s total bed capacity in Berlin will increase to approximately 8,000.
Growth in the Hostel Segment: a&o’s Expansion Strategy
Headquartered in Berlin, a&o Hostels operates numerous hostels across Europe, primarily targeting young travelers, groups, and budget-oriented guests. Their concept successfully combines traditional multi-bed hostel rooms with hotel-like room categories, a model that has proven popular in many European cities.
The project on Rudi-Dutschke-Straße is integral to the company’s broader expansion strategy. a&o has allocated several hundred million euros for new locations and conversion projects, with a particular focus on inner-city areas and existing buildings suitable for transformation into hostels.
High Demand for Budget Accommodation in Europe
This development also reflects a wider trend: budget accommodation and hostels are gaining increasing importance in the European tourism market. This segment shows strong growth, especially in metropolitan areas with high demand for affordable overnight stays.
The planned mega-hostel at Checkpoint Charlie will not only introduce another tourist offering in a central location but also represents one of the largest projects within the European hostel market.
Source: a&o Hostels, Presseportal, Der Tagesspiegel, Deal Magazine
