King Street Capital Management has announced a strategic equity investment of up to €400 million in Madrid-based hotel and hostels “urban lifestyle hospitality platform” Room00 Group.
King Street’s investment will support Room00’s pan-European expansion strategy, allowing the company to continue its accelerated development in key markets such as Spain, Portugal and Italy.
“The funding will primarily be used to acquire and hotel properties in prime micro-locations in cities including Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence,” nsaid King Street.
“As such, 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 and LETOH LETOH.
“Each brand responds to a growing demand for authentic experiences, contemporary design and prime urban locations. 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.”
Paul Brennan, Partner and Co-Head of Real Estate at King Street, said: “We view Room00 as one of the strongest, most innovative and scalable platforms in the European hospitality landscape.
“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.”
Ignacio Requena, Founder & CEO of Room00 Group, said: “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.”