Spanish hospitality innovator Room00 Group has secured a landmark €400m investment from global alternative investment firm King Street Capital Management, fuelling an ambitious expansion that promises to reshape the Southern European hospitality sector.
The substantial backing will accelerate Room00's aggressive growth strategy across Spain, Portugal and Italy, with plans to acquire and revitalise prime hotel properties in sought-after micro-locations throughout Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence. This strategic move comes at a critical time when urban tourism demand is surging and property acquisition opportunities abound for well-capitalised players.
"This investment from King Street validates our business model as the leading vertically integrated hotel operating and investment platform in the Southern European urban lifestyle hospitality industry, and will allow us to accelerate growth via acquisitions of prime real estate, attract the best talent and open new opportunities for collaboration with investors who share our long-term vision," said Ignacio Requena, CEO of Room00.
Founded in 2012, the Madrid-based company has developed a distinctive ecosystem spanning 2,500 rooms and 50 assets through its portfolio of lifestyle brands: Room00 Hostels, Toc Hostels, room Select Hotels, and LETOH LETOH. What particularly stands out for investors is Room00's vertically integrated model that combines technological innovation with strategic property selection, creating substantial value through operational efficiency and yield optimisation - critical advantages in the increasingly competitive European hospitality market.
"We view Room00 as one of the strongest, most innovative and scalable platforms in the European hospitality landscape," said Paul Brennan, Partner and Co-Head of Real Estate at King Street. "Its fully integrated operating model and strategic focus on prime city centre locations position it as a valuable partner for our real estate growth strategy in Europe."
The investment positions Room00 for extraordinary growth, with targets of 200 assets and 15,000 rooms across Southern Europe within four years, plus plans to enter the lucrative London market by year-end 2025. For developers and investors watching the space, Room00's parallel announcement of an Italian property investment vehicle with Kryalos SGR signals exciting partnership opportunities as the company scales its innovative hospitality model across the continent.
People mentioned:
- Ignacio Requena - CEO, Room00 Group
- Paul Brennan - Partner and Co-Head of Real Estate, King Street Capital Management
Companies mentioned:
- Room00 Group - Spanish urban lifestyle hospitality platform
- King Street Capital Management - Global alternative investment firm managing over €25.2bn in assets
- Kryalos SGR - Selected by Room00 to set up an Italian property investment vehicle
IMAGE: Ignacio Requena
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