M&g Plc LSE:MNG
M&G : makes first hotel investment for its pan European Fund with c.€50m acquisition in Barcelona
Source: MarketScreener
London, 23 April 2026 - M&G Real Estate, part of M&G's €93 billion¹ private markets business, has acquired the Travelodge Poblenou Hotel in Barcelona for circa €50 million, on behalf of the €4.8bn M&G European Property Fund1, Europe's largest open ended real estate funds excluding the UK2. 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 startups 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."
Federico Bros, Director of Investments & Asset Management for Iberia at M&G Real Estate, added: "Acquiring a rare, 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."
With over €1.1bn purchases completed or agreed in the last six months across a diversified set of well located assets in core European cities, the M&G European Property Fund continues to deploy capital where long term structural demand, supply constraints and sustainability considerations support resilient income and long term value creation for institutional investors globally.
Perez Llorca, Knight Frank, Arcadis and Ramboll, advised M&G Real Estate as advisors on this transaction.
1As of 31 December 2025 - (M&G European property Gross Asset Value)
2 Source: INREV Open Ended Diversified Core Equity Fund Index - Index Q4 2025
3As of March 2026. Ratings should not be taken as a recommendation. Please visit https://breeam.com/about/how-breeam-works for more information
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 startups 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."
Federico Bros, Director of Investments & Asset Management for Iberia at M&G Real Estate, added: "Acquiring a rare, 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."
With over €1.1bn purchases completed or agreed in the last six months across a diversified set of well located assets in core European cities, the M&G European Property Fund continues to deploy capital where long term structural demand, supply constraints and sustainability considerations support resilient income and long term value creation for institutional investors globally.
Perez Llorca, Knight Frank, Arcadis and Ramboll, advised M&G Real Estate as advisors on this transaction.
1As of 31 December 2025 - (M&G European property Gross Asset Value)
2 Source: INREV Open Ended Diversified Core Equity Fund Index - Index Q4 2025
3As of March 2026. Ratings should not be taken as a recommendation. Please visit https://breeam.com/about/how-breeam-works for more information