Patron completes sale of Dublin hostel to BlackRock
Patron Capital, a pan-European institutional investor focused on property-backed investments, and CoDE Pod Hostels (CoDE), have sold Jacobs Inn, a 412-bed hostel in Dublin, to a fund managed by BlackRock Real Assets.
Patron Capital acquired the unbranded hostel located in central Dublin in a joint venture with hostel operator, CoDE, in October 2017. Since then, Patron has completed a comprehensive asset management programme that has repositioned the property, establishing it as the leading hostel in Dublin. This included the refurbishment of bedrooms and the introduction of CoDE’s signature capsule beds known as Pods, in place of traditional bunk-beds, as well as the restructuring of the ground floor to create a dedicated bar area, a full F&B offering and improved customer experience.
The fund, managed by BlackRock Real Assets, has acquired the property alongside its partner and hostel operator, Amistat Continental. Together, the parties are building a pan-European hostel portfolio, with Jacobs Inn representing the fourth hostel either acquired or under contract since launching the strategy in 2019.
Keith Breslauer, Managing Director of Patron Capital, says: “When we acquired this asset in late 2017, we did so because we recognised the significant opportunity in the property’s location, the strength of CoDE’s unique capsule bed concept, and the growing appetite from both users and investors for hostel accommodation. Having previously built and sold the Generator brand, the hostel space is one we know well and to have successfully executed our strategy and exited just over two years after acquisition is a strong endorsement of our team’s expertise in creating high-quality hospitality assets.
“Hospitality remains an interesting asset class and we continue to see value and opportunities to invest in hotels and hostels in the UK and Europe.”
Andrew Landsburgh, Founder and Chief Executive of CoDE, says: “Combining our luxury pod concept with Patron’s extensive experience in creating design-led F&B and common areas allowed the partnership to build a highly appealing product focused on the premium segment of youth travel. Having successfully delivered and exited the first pod-style hostel in Dublin, we are now focused on taking this concept to a range of locations in both the Europe and the US, as well as expanding into co-living.”