Azora buys two hotels in Brussels

Azora has completed the acquisition of two hotels and two adjacent buildings to the hotels in central Brussels on behalf of its Azora European Hotel and Lodging Fund (AEHL).

The acquisition of Hotel Berger and Hotel Jardin Secret which comprise a total of 99 hotel keys also includes two adjacent buildings which Azora plans to reposition into a 130-bed hostel.

The assets – which share a private garden with a swimming pool – will be managed by Latroupe, a hostel and lifestyle hotel focused operating platform which was launched by Azora in 2021. These acquisitions expand Latroupe’s portfolio to eight assets and 1,600 beds across Madrid, Bilbao, Brussels, Dublin and Barcelona.

Latroupe plans to continue expanding its operational activity into other key European gateway cities across Spain, Portugal, Italy, France and the United Kingdom, both through single asset and portfolio acquisitions by Azora as well as via management contracts and lease agreements with third party owners.

Azora launched AEHL in 2021 with €815 million in capital. Since then, AEHL has invested into the vacation hotel segment with a value-add strategy, and more recently has begun to utilise an alternative hotel strategy for urban tourism aimed at travellers of all ages.

Azora was advised by Gomez Acebo y Pombo, KPMG and Almar on the transaction.

Why it matters

Azora's focus on urban tourism and alternative hotel strategies underscores the growing demand for urban hospitality solutions. Furthermore, the company’s foray into the alternative hospitality segment - which includes its plan to turn the adjacent buildings into a hostel as well as its purchase of the Jacobs Inn hostels in Dublin and Barcelona - aligns with broader industry trends where alternative accommodations such as hostels and lifestyle hotels are gaining popularity among travellers, particularly the younger generation and budget-conscious tourists.

What they said

Concha Osácar, one of Azora’s founding partners said: “This acquisition represents a significant opportunity to expand our portfolio of urban hotels in an attractive local market where we already have an established presence. We plan to utilise our strong asset management expertise to refurbish and upgrade these hotels, demonstrating both our ongoing conviction for the hospitality sector in our key target markets, and our efforts to pioneer a new category of alternative hotel establishments which combine a 4-star hotel service with the social vibrancy of a premium hostel.”

Carlos Cano, Latroupe’s managing director added: “Azora’s acquisition of these two assets and decision to bring them under the Latroupe brand underscores its commitment to expanding and incorporating new assets into our platform, particularly in well-established European destinations. We are proactively pursuing fresh investment prospects by both acquiring existing assets and through signing management agreements with property owners keen on utilizing Latroupe's technology and expertise to enhance their business growth.”