Room00 Group Receives Strategic Investment

Introduction to Room00 Group

Room00 Group, a Spanish urban lifestyle hospitality platform, has announced that it has received a strategic investment of up to €400 million from King Street Capital Management, a global alternative investment firm. This significant investment will play a crucial role in supporting Room00’s expansion strategy across Europe, specifically in key markets such as Spain, Portugal, and Italy.

Expansion Strategy

The funding provided by King Street Capital Management will primarily be used to acquire and refurbish hotel properties in prime locations within cities like Madrid, Barcelona, Lisbon, Porto, Milan, Rome, and Florence. This move is part of Room00’s broader plan to strengthen its presence in the Southern European urban lifestyle hospitality industry.

CEO’s Perspective

According to Ignacio Requena, CEO of Room00, “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.” This statement highlights the optimism and future plans of Room00 following the investment.

About Room00

Room00 is a lifestyle urban hospitality platform founded in 2012. It combines design, local expertise, and technology to offer unique accommodation experiences in prime locations. The company operates with its own flexible brands, catering to urban travelers seeking authenticity and comfort. Currently present in Spain and Portugal, Room00 is in the process of expanding throughout Europe, with a focus on key cities.

Growth Model

Room00 will continue to leverage its existing growth model based on leases and hotel management agreements. With the new investment, the company now has the capacity to acquire properties directly, further solidifying its position in the market. In Italy, Room00 has partnered with Kryalos SGR to establish an Italian property investment vehicle, marking a significant step in its European expansion.

Brands and Portfolio

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

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

Future Plans

The company intends to significantly grow its portfolio to 200 assets and 15,000 rooms in the next four years across Southern Europe. Additionally, Room00 is planning to enter the London market with its first asset by the end of 2025, initially aiming for 20 assets and 1,000 rooms.

Investor’s Perspective

Paul Brennan, Partner and Co-Head of Real Estate at King Street, views Room00 as “one of the strongest, most innovative and scalable platforms in the European hospitality landscape.” He believes that its fully integrated operating model and strategic focus on prime city centre locations position it as a valuable partner for their real estate growth strategy in Europe.

About King Street Capital Management

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 is known for combining research with tactical trading expertise and differentiated sourcing capabilities to uncover dislocations and mispriced opportunities across asset classes and throughout the capital structure.

Conclusion

The strategic investment of up to €400 million from King Street Capital Management marks a significant milestone for Room00 Group, enabling the company to accelerate its expansion across Europe. With its unique approach to urban lifestyle hospitality and a strong growth model, Room00 is poised to become a leading player in the European hospitality industry. This investment not only validates Room00’s business model but also underscores the potential for growth and innovation in the urban lifestyle hospitality sector. As Room00 continues to expand its portfolio and enter new markets, it is likely to redefine the standards of urban hospitality, offering travelers unique and authentic experiences in prime city locations.