Madrid-based Room00 raises €400M from King Street for European growth

Madrid-based Room00 Group, an urban lifestyle hospitality platform, announced that it has secured €400M in a strategic investment from King Street Capital Management, a global alternative investment firm.

King Street is a global alternative investment firm managing over $28B in assets across public and private markets. The company focuses on debt and equity investments in special situations and thematic platforms.

Since its inception, King Street has completed transactions totaling $20B in real estate securities and real estate-related investments.

The funding will help the Spanish company in executing a pan-European expansion strategy and accelerating its development in key markets such as Spain, Portugal, and Italy.

“We view Room00 as one of the strongest, most innovative and scalable platforms in the European hospitality landscape,” says 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.”

Fund utilisation

The funding will primarily be used to acquire and refurbish hotel properties in prime micro-locations in cities including Madrid, Barcelona, Lisbon, Porto, Milan, Rome, and Florence.

As such, the company will continue to rely on its existing growth model based on leases and hotel management agreements, with the capacity now to acquire properties directly.

In Italy, Room00 has selected Kryalos SGR to set up an Italian property investment vehicle.

Room00: Urban lifestyle hospitality platform.

Led by Ignacio Requena, Room00 combines design, local expertise, and technology to offer unique accommodation in prime locations.

The company operates with its flexible brands, aimed at the urban traveler seeking authenticity and comfort.

Currently, the company is present in Spain and Portugal.

The company’s ecosystem of more than 2,500 rooms and 50 assets in operation or under development operates under a portfolio of brands designed to appeal to different profiles of the modern traveler: Room00 Hostels, Toc Hostels, Room Select Hotels, and LETOH LETOH.

The Spanish company intends to grow its portfolio to 200 assets and 15,000 rooms in the next four years across Southern Europe, plus another 20 assets and 1,000 rooms in London, which the company is negotiating to enter with its first asset by the end of 2025.

“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,” says Ignacio Requena, CEO of Room00.