Madrid-based HotelTech startup Room00 gets an upgrade with €400 million to expand across Europe

Room00 Group, a Spanish urban lifestyle hospitality platform, announced today it has received a strategic investment of up to €400 million from King Street Capital Management, a global alternative investment firm.

The investment will support Room00’s pan-European expansion strategy, allowing the company to continue its development in key markets such as Spain, Portugal and Italy. 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.

“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, Room00 is a lifestyle urban hospitality platform, with an approach that combines design, local expertise and technology to offer accommodation in prime locations. The company operates with its own flexible brands, aimed at the urban traveler seeking authenticity and comfort. Currently present in Spain and Portugal, ROOM00 GROUP is currently in the process of expanding throughout Europe.

Room00 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’s ecosystem of more than 2,500 rooms and 50 assets in operation or under development operate under a portfolio of brands designed to appeal to different profiles of the modern traveler:

• Room00 Hostels
• Toc Hostels
• room Select Hotels
• LETOH LETOH

Room00 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.

“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.”

King Street is a global alternative investment firm founded in 1995, managing over €25.2 billion in assets across public and private markets. The firm combines research with tactical trading expertise and differentiated sourcing capabilities to uncover dislocations and mispriced opportunities across asset classes and throughout the capital structure.

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