Latest news with #Room00
Skift
19-05-2025
- Business
- Skift
Room00 Raises $450 Million to Expand Its Urban Hotels and Hostels Across Europe
With new funding secured, Room00 plans to expand quickly, but it says it won't forget its niche. Madrid-based Room00, known for its hostels and compact hotels, has secured €400 million (about $450 million) to accelerate its European expansion and buy properties outright for the first time. "This capital changes our business model a little bit," founder and CEO Ignacio Requena told Skift. 'At the beginning, we were an asset-light company. With this capital, we have the opportunity to buy properties.' Room00 has relied on leases and hotel management agreements to expand across Southern Europe. Requena said the company can now acquire 30 to 40 properties with the new funding and potentially more from banks. Room00 operates several brands aimed at urban travelers, including Room00 Hostels, TOC Hostels, Room Select Hostels, and Letoh Letoh, ranging from budget-friendly design hostels to boutique hotels. London Expansion London will be Room00's first expansion beyond Southern Europe, with a goal of year-end for its first property in the city. "Our goal is to reach 20 assets and around 1,000 rooms in London in the next three years," said Requena. Despite London's crowded hospitality scene of global brands, hybrids, and independents, Requena sees an opportunity to target millennials and Gen Z travelers, a demographic he believes is underserved. Growing from 50 properties to over 200 in four years will require more than capital. Requena said the challenge is maintaining consistency while adjusting to each market. Requena said the company has no plans to broaden its appeal or reinvent itself. Instead, it wants to replicate its early success across new locations. "We don't want to change a lot," Requena said. "When you check our customer, they are growing the demand for authentic, design-oriented experiences that larger hostel chains, independents, and hybrid operators like us are better suited to meet." In Italy, Room00 is working with local real estate firm Kryalos SGR to launch a property investment vehicle, a model it could replicate in other markets as it grows. The company will continue expanding through selective acquisitions. "Our segment is really fragmented," he said. That includes Room00's 2024 acquisition of TOC Hostels for €20 million (about $22 million), a move that added 30 properties and another 20 under development across Spain, Portugal, and Italy. The fresh capital comes from U.S. investment firm King Street Capital Management.
Yahoo
13-05-2025
- Business
- Yahoo
Room00 secures $449.7m investment from King Street for European expansion
European urban lifestyle hospitality platform Room00 Group has received an investment of up to €400m ($449.7m) from King Street Capital Management to support its pan-European expansion. This strategic equity investment is set to support Room00's expansion strategy, particularly in key markets such as Portugal, Spain and Italy. The funds from King Street will primarily facilitate the acquisition of hotel properties in prime locations such as Barcelona, Florence, Lisbon, Madrid, Milan, Porto and Rome. Room00 plans to leverage its existing growth model, which includes leases and hotel management agreements, and the new capital will now enable the company to directly acquire properties. In Italy, Room00 has partnered with Kryalos SGR, an independent private AIFMD-regulated fund manager, to establish a property investment vehicle. The group's ecosystem currently encompasses more than 2,500 rooms and 50 assets, either operational or under development, spread across a portfolio of brands including Room00 Hostels, Toc Hostels, room Select Hotels, and LETOH LETOH. Room00 aims to expand its portfolio to 200 assets and 15,000 rooms within the next four years throughout Southern Europe. Additionally, the company is in talks to establish a presence in London with an initial 20 assets and 1,000 rooms, aiming to secure its first property in the city by the end of this year. King Street partner and real estate co-head Paul Brennan 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." Advisory services for Room00 were provided by GRC IM and CBRE Investment Banking, with Garrigues, Cuatrecasas, and Across Legal offering legal counsel. King Street was advised by Uría Menéndez and Allen & Overy Shearman while EY conducted financial due diligence and PwC provided tax structuring advice. In November 2023, King Street Capital Management and Kronos Homes completed the sale of Palmares Ocean Living & Golf resort in Portugal to funds under the management of Arrow Global. "Room00 secures $449.7m investment from King Street for European expansion" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
13-05-2025
- Business
- Reuters
Spanish hotel group Room00 raises $444 million to fund London expansion
MADRID, May 13 (Reuters) - Spanish hotel group Room00 said on Tuesday it had raised 400 million euros ($444.4 million) in new equity from investment fund King Street Capital Management to finance its expansion in London. The company did not disclose its valuation after the capital injection. The privately held company runs 50 high-end hostels in Spain, Italy and Portugal with about 2,500 individual and group rooms designed for young tourists. Room00 intends to buy 20 assets in London with as many as 1,000 rooms, it said. The company, owned by Spanish businessman Ignacio Requena, has recently bought a series of hostels and intends to leverage on the current Southern Europe tourism growth to expand elsewhere. ($1 = 0.9002 euros)
