M&G Real Estate, part of M&G’s €93bn private markets business, has acquired the Travelodge Poblenou Hotel in Barcelona for circa €50M, on behalf of the €4.8bn M&G European Property Fund, Europe’s largest open ended real estate funds excluding the UK.
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.
Barcelona is one of Europe’s most visited cities, with international tourism, corporate travel and the expansion of the nearby 22@ tech district, a major attraction for global start-ups and entrepreneurs.
Well located hotels, such as Travelodge Poblenou, are set to benefit from sustained occupancy and long term pricing power, due to strict planning regulations limiting new hotel development and the planned ban on short-term rentals from 2028.
Located in the heart of Poblenou, one of Barcelona’s fastest 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.”
