LONDON—TPG Real Estate said Wednesday it had acquired Berlin-based A&O Hotels and Hostels, the largest fully integrated, privately-owned, hostel platform in Europe. Financial terms were not disclosed.

“We founded A&O almost 20 years ago in Berlin, and it has grown into one of the leading German budget hotel operators,” says CEO Oliver Winter. “With TPG's global presence and expertise in buying and building platforms, I believe it is the ideal partner to strengthen and expand our business across Europe.”

TPG Real Estate is acquiring 31 leased and owned assets, representing more than 20,000 beds and located primarily in Germany, although there are also properties in Amsterdam and Vienna. Key members of A&O's management team, including Winter, will continue to lead the company after the transaction.

At TPG Real Estate, partner Anand Tejani says A&O is “a strong operator that is well positioned to capitalize on favorable global and European travel trends. Over the last number of years, the sector has experienced rapid growth, particularly due to an increase in travelers in search of affordable, reliable, lodging options. Oliver has built a great business that addresses this demand.”