M&G Real Estate has completed the purchase of the Travelodge Poblenou hotel in Barcelona’s 22@ district for approximately €50 million. For the execution of this sale, M&G Real Estate was advised by Pérez Llorca, Knight Frank, Arcadis and Ramboll on technical and legal matters.
The acquired asset has a floor area of 10,063 sqm spread over 12 floors, housing 250 rooms, three meeting rooms and 36 parking spaces. The property is currently managed by Travelodge Hotels Spain under a long-term lease agreement. The property was refurbished last year and holds an EPC A energy rating, as well as a BREEAM ‘Good’ sustainability certification, although the new owner plans to make further investments to raise this standard to ‘Excellent’ in the coming months.
This transaction marks the first exclusive foray into the hotel sector by the M&G European Property Fund, an open-ended property fund with assets under management of €4.8 billion. The asset joins a portfolio that already totals €1.2 billion in diversified assets across the Iberian Peninsula.
Simon Ellis, manager of the M&G European Property Fund, notes that, in the face of a more uncertain global environment, he is focusing on assets that can generate stable and reliable long-term income.
The transaction takes place against a market backdrop characterised by a shortage of hotel supply in Barcelona due to restrictive planning regulations and the forthcoming ban on short-term rentals scheduled for 2028.
Over the past six months, the parent fund has committed to purchases worth over €1.1 billion in various European capital cities.
