Azora has acquired two hostels 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 Jacobs Inn Dublin and the Jacobs Inn Barcelona is currently operated by Siggis Capital. The assets are sold unencumbered and will be operated by Latroupe, the boutique hostel operator owned by AEHL which combines the facilities of a large hotel with the atmosphere of a traditional hostel.
Latroupe 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.
Azora’s purchase of Jacobs Inn Dublin marks its entry into the Irish hospitality market.
Azora was advised by Pinsent Masons, KPMG and Arcadis. BlackRock was advised by JLL, Colliers, Matheson LLP, CMS and PwC.
Why it matters
Azora says urban hostels are a key target for its hospitality strategy which aims to combine 4-star hotel service with the social interaction offered by a premium hostel, and these purchases underscore the growing popularity of hostels as more and more investors continue to recognise the opportunity in social-led travel accommodation for a younger, more budget-conscious demographic.
What they said
Concha Osácar, Azora’s founding partner said: “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.”
Carlos Cano, managing director of Latroupe added: “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.”