Room00 features more than 2,500 rooms and 50 assets in operation or under development
King Street Capital Management, a global alternative market investment firm, has announced a strategic equity investment of up to EUR 400 million in Room00 Group, an urban lifestyle hospitality platform, based in southern Europe.
In a statement, King Street says that the funding will be primarily be used to acquire hotel properties in prime micro-locations in cities including Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence. In Italy, Room00 has selected Kryalos SGR to set up an Italian property investment vehicle.
“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,” says Paul Brennan, Partner and Co-Head of Real Estate, King Street.
The statement adds that Room00 features more than 2,500 rooms and 50 assets in operation or under development operating under a portfolio of brands designed to appeal to different profiles of the modern traveller, including Room00 Hostels, Toc Hostels, room Select Hotels and Letoh Letoh. The brand intends to grow its portfolio to 200 assets and 15,000 rooms in the next four years across Southern Europe, and 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.
“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,” says Ignacio Requena, Founder & CEO, Room00 Group.
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