With backing from King Street Capital, the Madrid-based brand accelerates its expansion of modular, design-led hotels and hostels in top European city centers
May 13, 2025
Room00, a Madrid-based hospitality platform, is redefining affordable urban travel in Europe by transforming underused spaces into stylish, tech-driven hostels and hotels. With a new €400 million investment from King Street Capital Management, the company is poised for rapid expansion into prime city-centre locations across Southern Europe. Room00’s asset-light, modular model promises value, design, and comfort – targeting modern travellers while offering property investors a scalable, sustainable growth platform.
Key takeaways
- Major funding secured: Room00 raised €400 million from King Street Capital Management to expand its portfolio in key European cities, including Madrid, Lisbon, Milan, and Rome.
- Growth strategy: The capital will fund acquisitions and renovations of properties in micro-locations, enabling Room00 to scale beyond leases and hotel management into direct real estate ownership.
- Partnerships for expansion: In Italy, Room00 has partnered with Kryalos SGR to establish a dedicated investment vehicle focused on urban regeneration.
- Innovative hospitality model: Founded in 2012, Room00 blends the affordability and community of hostels with the comfort and design of boutique hotels, targeting young travellers and families.
- Rapid scale goals: Room00 aims to grow to 200 properties and 15,000 rooms by 2029, with plans to enter the London market by 2025.
- Sustainability & tech focus: Room00 repurposes buildings and uses tech automation, aligning with eco-conscious trends in urban hospitality.
- Positioning & differentiation: Competing with brands like Generator and The Student Hotel, Room00 stands out with its hybrid model and vertical integration, combining operations and real estate ownership under one platform.
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