The investment will fund Room00’s pan-European expansion strategy, enabling it to grow in key markets such as Spain, Portugal and Italy, and the funds will be used primarily to purchase and rehabilitate hotel properties in premium areas in cities such as Lisbon, Porto, Madrid, Barcelona, ​​Milan, Rome and Florence.

Room00 aims to expand its portfolio to 200 assets and 15,000 rooms over the next four years in Southern Europe, as well as 20 assets and 1,000 rooms in London, where the company plans to open its first tourism unit by the end of this year, according to ECO.

Currently, the group founded in Madrid in 2012 has more than 2,500 rooms and 50 assets in operation or under development, as part of a portfolio of brands created to meet different traveller profiles: Room00 Hostels, Toc Hostels, Room Select Hotels and Letoh Letoh (boutique hotels with traditional rooms and others consisting of bunk beds). What they have in common is their contemporary design and privileged urban location.

“Room00 will continue to pursue its growth model based on hotel rental and management contracts, and will now also have the ability to acquire properties directly,” the company said in a statement.

In Italy, it chose Kryalos SGR (Milan) to structure a dedicated real estate investment vehicle. As far as Portugal is concerned, another real estate investment fund manager is to be selected, although details are not yet known.

Room00 CEO Ignacio Requena believes that this investment from King Street “validates” the company’s business model and “will allow us to accelerate growth through the acquisition of strategic assets, attract top talent and open up new opportunities for collaboration with investors who share” its long-term vision both internally and for the urban hospitality and lifestyle sector.

“We view Room00 as one of the strongest, most innovative and scalable platforms in the European hospitality landscape. Their fully integrated operating model and strategic focus on central locations make them a valuable partner for our European real estate growth strategy,” said Paul Brennan, Co-Head of Real Estate at King Street.