Madrid-based real estate investment manager Azora has completed the acquisition of two hostels located in Dublin and Barcelona on behalf of its Azora European Hotel and Lodging Fund (AEHL), through a transaction with a fund managed by BlackRock.
The portfolio, which comprises the Jacobs Inn Dublin and the Jacobs Inn Barcelona, is currently operated by Siggis Capital.
Concha Osácar, one of Azora’s founding partners, commented: 'This acquisition represents a rare opportunity to acquire an urban portfolio in two attractive destinations which benefit from strong domestic and international tourism.
'The transaction also provides us with the chance to expand Latroupe’s footprint and to continue consolidating our urban hostels portfolio as a key part of our wider hospitality strategy through the entry into important new markets such as Ireland.'
The assets are sold unencumbered and will be operated by Latroupe, the boutique hostel operator owned by AEHL.
Latroupe was created in 2021 and manages a hostel portfolio comprising three assets in Madrid, Bilbao, and Brussels, with a combined 700 beds. This transaction will broaden the platform’s European footprint and add over 550 beds to its portfolio.
All assets operated by Latroupe are located in city centres and, according to the firm, 'combine 4-star hotel services with the vibrancy and social environment typical of a premium hostel'. The company plans to continue expanding the portfolio of hostels it operates in other European cities.
Azora launched its first private equity fund for hospitality, Azora European Hotel & Lodging (AEHL), in 2021, with €815 mln in capital.
Since then, AEHL has invested into the vacation hotel segment in major European destinations with a value-add strategy based on asset transformation and active management of hotel operations.
More recently, the fund has also begun to utilise an alternative hotel strategy for urban tourism aimed at travellers of all ages, through which Azora aims to revolutionise city tourism.
On the transaction, Azora was advised by Pinsent Masons, KPMG and Arcadis and BlackRock was advised by JLL, Colliers, Matheson LLP, CMS and PwC.
Carlos Cano, Latroupe’s managing drector, said: 'The transaction highlights Latroupe’s ambition to keep growing and adding new assets to the platform across some of the most consolidated European destinations.
'We are actively seeking new investment opportunities through the purchase of existing assets and through management agreements with property owners who want to leverage on Latroupe's technology and know-how to grow their business.
'Our aim is to be the reference brand for our customers when they travel in Europe, thanks to the quality of our service and our promise to connect travellers with the best of the local scene in each city.'
