Circular approach also central to budget accommodation

Sustainability report provides insight into efforts

We are all becoming more conscious of our environment. With ESG reporting, companies provide information on the impact of their activities on the environment and society. Sustainability is also gaining importance in the hospitality sector. For instance, a&o Hostels, Europe's largest private provider of budget accommodation, presented its third sustainability report in August. From repurposing, renewable energy, less waste and CO2 to cooperation with local players, we highlight the key spearheads.

The latest ESG report from a&o Hostels shares its concrete results from 2024. For instance, since the first measurements in 2015, the chain reduced its CO2 emissions per overnight stay by more than 75 per cent. In 2024, the average was around 3.65 kilograms per guest per night. The focus is explicitly on direct and measurable reductions within its own operation and value chain, not on external offsets.

Learning and improving together

The report cites several, key milestones in 2024. For instance, 98 per cent of electricity demand is now met by renewable energy and 12 sites together generate around 500 megawatt hours a year with solar panels. In Venice, Florence and Budapest, 90 per cent of food is sourced locally and all single-use breakfast packaging has been phased out. A&o Hostels also introduced FoodNotify, a platform through which it monitors orders, stock and food waste in real time.

Arben Maliqi, ESG director at a&o Hostels, says: “Our focus is on direct, demonstrable reductions and a circular approach to our operations. That means continuing to invest in energy efficiency, renewable energy and local partnerships. It is a learning process: the more we delve, the better we understand how much there is still to do. Together, we are working towards a more sustainable and fairer future for the travel and hospitality sector.”

Repurposing and energy-efficient renovation

As many as 93 per cent of a&o sites are located in a repurposed building, such as former offices, factories or administrative centres. Of the 43 current properties in 30 cities and 10 countries, 40 have been redeveloped in this way. A&o continues to invest in energy-efficient renovations, with a minimum energy label C as a target for each building. By 2024, nine sustainability audits were carried out at a&o sites. In these, A&o Edinburgh City achieved a 90 per cent compliance rate, becoming the second hostel, after a&o Venezia Mestre, to reach this milestone. 

Corporate social responsibility

Besides energy efficiency, circularity is also key in a&o's sustainability strategy and they are strongly committed to social projects. For example, the company donates more than 2,000 overnight stays to charities and cultural initiatives every year. Art project art&o has collaborated with more than 350 artists at the a&o Kunsthalle Leipzig since 2018. Cooperation with SOS-Kinderdorf Berlin and local education projects, including an insect hotel in Frankfurt, as well as support for local sports clubs and athletes, also frame the human aspect of sustainable business.