M&G Real Estate Buys Motel One Brussels Hotel From Union Investment

LONDON, Nov. 3, 2026 – M&G Real Estate has acquired the Motel One hotel in Central Brussels on behalf of the €5.9 billion M&G European Property Fund, the firm announced. The seller was Union Investment. The deal is the fund's second hotel investment, following its purchase of the Travelodge Poblenou in Barcelona earlier this year.

M&G Real Estate is part of M&G's €96 billion private markets business. The firm described the M&G European Property Fund as one of the largest Continental European open-ended real estate funds.

Motel One Brussels Asset Details

The property is located at Rue Royale 120, between the European Quarter, the city's central business district and several of Belgium's most visited cultural landmarks. The hotel has 490 rooms and totals 14,075 square meters (about 151,500 square feet). It also includes 199 parking units and amenities such as co-working space, food and beverage facilities and landscaped outdoor areas.

Built in 2014 and renovated in 2024, the building is fully leased to Motel One Belgium SRL under a long-term triple-net lease with annual indexation linked to inflation. The tenant schedule shows a weighted average lease term of about 14 years. Indigo Park leases the parking, and the property also includes a small retail unit. The building was developed for Union Investment, which acquired it as a development project in 2011.

M&G plans to improve the building's sustainability credentials to a minimum BREEAM Very Good certification.

Comments From Antonin Prade and Simon Ellis

Antonin Prade, Investment Director for France and BeLux at M&G Real Estate, said: "Transactions of this quality rarely come to market in Brussels. The combination of a prime city-centre location, a recently refurbished building and a long-term lease to a leading European operator made this a particularly attractive opportunity. The acquisition reflects our disciplined investment approach and our ability to identify and execute on high-quality assets that meet the Fund's demanding criteria for location, income security and asset quality."

Simon Ellis, Fund Manager of the M&G European Property Fund, said: "Hospitality can play an important role in a diversified real estate portfolio when supported by high-quality assets, experienced operators and secure lease structures. Motel One Brussels combines these characteristics, offering our investors exposure to a resilient market with the potential for an attractive income return and long-term growth potential. As we celebrate the Fund's twentieth anniversary, this acquisition demonstrates our continued commitment to selectively deploying capital into sectors where income resilience and sustainability improvements can support long-term value creation for our investors."

Brussels Hotel Market Fundamentals

M&G pointed to Brussels' role as the capital of the European Union, with demand from EU institutions, international organizations, corporate travelers and year-round tourism. The city records more than 6.5 million visitors and about nine million overnight stays annually, according to the firm.

Supply additions are limited. Brussels had approximately 19,500 hotel rooms across 203 hotels as of March 2026, with a pipeline of about 900 rooms across nine projects over the following three to four years. Nearly half of that pipeline is concentrated near Brussels Airport and Brussels Midi Station. Before the pandemic, Brussels hotel occupancy ran in the mid-70% range, driven by corporate and meetings, incentives, conferences and exhibitions activity.

Fund Strategy and Barcelona Precedent

The acquisition comes as the M&G European Property Fund marks its 20th anniversary. The fund said it has built a diversified portfolio across Europe's major markets and property sectors and has focused on high-quality assets in locations supported by long-term structural demand. M&G said the Brussels purchase reflects the fund's selective expansion into alternative sectors.

In April 2026, the fund acquired the 250-room Travelodge Poblenou Hotel in Barcelona's 22@ district for approximately €50 million. That property measures 10,063 square meters, includes 36 parking spaces and is leased to Travelodge under a long-term agreement. Both hotel investments pair established European operators with long leases, giving the fund exposure to hospitality real estate through contracted rental income.

Under a triple-net structure, property-level operating expenses and capital obligations generally shift toward the tenant, while annual indexation provides a mechanism for rental growth linked to inflation.

Sources

• M&G press release, "M&G expands European hotel exposure with Motel One acquisition in Brussels": https://group.mandg.com/news-and-insights/press-releases/2026/03-11-2026