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Published on Tue, 05/13/2025 – 09:56
King Street Capital Management has announced a €400 million investment in Room00, a European player specialising in urban and lifestyle hotels. This financing is designed to support the company’s growth and accelerate its expansion in key markets in Southern Europe.
Investment to support Room00’s pan-European expansion
This strategic investment will enable Room00 to continue its expansion, particularly in Spain, Portugal and Italy, and to prepare for its entry into the UK market.
The funds will be used to acquire and renovate properties in strategic European cities such as Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence.
The company is thus expanding its portfolio while maintaining a hybrid model based on leases and hotel management contracts, but with the option of acquiring properties directly.
Ambitious targets for the future
Room00 currently operates more than 2,500 rooms across 50 properties, with brands ranging from youth hostels to hotels. The company plans to reach 200 properties and 15,000 rooms by 2029.
Room00 also has plans to add a further 1,000 rooms to its portfolio with its first location in London by the end of 2025.
“We consider Room00 to be one of the most innovative and scalable platforms in the European hotel landscape. Its fully integrated operating model and strategic focus on city centre locations make it a valuable partner in our European property growth strategy.” – Paul Brennan, Partner and Co-Head of Real Estate at King Street
“This investment by King Street validates our business model as the leading vertically integrated hotel operating and investment platform in the city and lifestyle hotel sector in Southern Europe. It will enable us to accelerate our growth through the acquisition of prime real estate, attract the best talent and open up new opportunities for collaboration with investors who share our long-term vision.” – Ignacio Requena, CEO of Room00
A growth strategy supported by a solid network of partners
King Street’s support is a key factor in Room00’s growth strategy. This partnership reflects a growing interest in the urban and lifestyle hotel sector, which is booming and attracting customers looking for authentic experiences in prime locations.
This investment will enable Room00 to continue its large-scale development, while consolidating its footprint in the urban hotel sector in Southern Europe.
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