King Street Capital Management has announced an equity investment of up to €400 million in Room00 Group, a hospitality platform based in Southern Europe.
The funding will support Room00’s expansion across Spain, Portugal and Italy. The company plans to use the capital to acquire and develop hotels in cities including Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence. Room00 will continue to grow through leases and management agreements, while also beginning to acquire properties directly. In Italy, the group has selected Kryalos SGR to establish a local investment vehicle.
Room00 operates more than 2,500 rooms across 50 assets, either in operation or under development. Its brand portfolio includes Room00 Hostels, Toc Hostels, room Select Hotels and LETOH LETOH. The company plans to reach 200 assets and 15,000 rooms across Southern Europe within four years, and is in talks to open its first asset in London by the end of 2025, aiming to grow to 20 assets and 1,000 rooms in the city.
“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.”
“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, Founder & CEO of Room00 Group.
Room00 was advised by GRC IM and CBRE Investment Banking. Legal advisors to the company included Garrigues, Cuatrecasas and Across Legal. Uría Menéndez and Allen & Overy Shearman advised King Street. EY conducted financial due diligence and PwC advised on tax structuring.
