Tuesday, 3 November 2026
M&G Real Estate has acquired a 490-room hotel in central Brussels from Union Investment, adding a hospitality property operated by Motel One to its European real estate portfolio. The transaction involves the hotel at 120 Rue Royale, close to Brussels Central Station, and is intended for the M&G European Property Fund. The financial terms of the acquisition have not been disclosed.
The property was previously held by Union Investment through its UniInstitutional European Real Estate fund, which invests in property on behalf of institutional investors. Union Investment originally acquired the development in 2011, before construction was completed, and incorporated the finished hotel into the fund in 2014. The sale brings an approximately twelve-year period of ownership of the completed asset to an end.
The hotel is operated by Motel One Belgium under a long-term lease agreement. Its location near Brussels Central Station provides access to the city’s business districts, government institutions and tourist destinations. The property’s 490 rooms give it a substantial presence in the central Brussels hotel market, where demand is supported by corporate travel, European institutional activity and leisure visitors.
For M&G Real Estate, the acquisition provides exposure to an established hotel property with an existing operator and a long-term rental agreement. Such arrangements can offer institutional property investors recurring rental income without requiring them to manage hotel operations directly. However, the financial performance and investment returns associated with the acquisition cannot be independently assessed because the purchase price, rental income and lease terms have not been disclosed.
Union Investment indicated that the disposal forms part of its ongoing management of the UniInstitutional European Real Estate portfolio. The transaction will release capital from an asset held for more than a decade, providing the fund with additional liquidity and flexibility for future investment decisions. The company also cited current conditions in Belgium’s investment market as a factor supporting the timing of the sale.
The transaction illustrates continued institutional interest in centrally located European hospitality properties, particularly those operated under long-term agreements with established hotel companies. Nevertheless, a single acquisition does not establish a wider recovery in hotel investment volumes or valuations. Assessing broader market conditions would require additional evidence from comparable transactions, financing activity and hospitality investment data.
Clifford Chance advised Union Investment on legal and tax matters, while Eastdil Secured and Savills acted as advisers on the disposal. The buyer’s advisers were not identified in the announcement.
The acquisition transfers ownership of one of Brussels’ larger centrally located hotels between two institutional real estate investment managers. With the property continuing under its existing Motel One lease, the transaction represents a change in investment ownership rather than an announced change in hotel operations or management.
