M&G Makes First Hotel Investment For Its Pan European Fund With c.€50m Acquisition in Barcelona

M&G Real Estate has acquired the Travelodge Hotels Limited Poblenou Hotel in Barcelona for circa €50 million, on behalf of the €4.8bn M&G European Property Fund1. The transaction marks the Fund’s first dedicated hotel acquisition, reflecting its selective approach to entering new sectors where strong fundamentals and long leases support long term performance.

Located in the heart of Poblenou, one of Barcelona’s growing business and innovation districts, the 250 room hotel is operated by Travelodge Hoteles España S.L. under a long term lease. The property benefits from strong transport links to the city’s main cultural, leisure and commercial areas, and plays a role in supporting tourism and local employment as the district continues to develop. Refurbished last year, the hotel holds an EPC A rating and a BREEAM3 “Good” certification, with further investment by M&G to support an upgrade to “Excellent” in the next months.

Simon Ellis, Fund Manager of the M&G European Property Fund, said, “In a more uncertain global environment, we’re focused on assets that can deliver steady, dependable income over the long term. Hospitality plays an important supporting role in a diversified real estate portfolio, giving us exposure to sectors driven by tourism, business travel and city growth. When backed by strong fundamentals, long leases and solid sustainability credentials, assets like Travelodge Poblenou show how we can add resilience and diversify across both regions and asset classes.”

Federico Bros Tejedor, Director of Investments & Asset Management for Iberia at M&G Real Estate, added, “Acquiring an institutionally leased hotel in one of Europe’s most supply constrained hospitality markets is a unique opportunity for our Iberian portfolio. Together with our recent living transactions in Spain, we now manage circa €1.2 billion of assets across logistics, living, retail, office and hospitality in Iberia, reinforcing our diversified footprint across the region.”

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