Madrid-based urban hospitality platform Room00 has secured a €400 million investment from U.S.-based King Street Capital Management.
The funding will accelerate the company’s pan-European expansion, focusing on key markets like Spain, Portugal, and Italy. King Street, which manages over $28 billion in assets globally, praised Room00’s integrated operating model and strategic focus on city-centre locations as key to its growth strategy.
Fueling acquisitions and expansion
The fresh capital will be used to acquire and refurbish properties in top-tier urban locations such as Madrid, Lisbon, Porto, Milan, Rome, and Florence. While Room00 will continue using leases and hotel management agreements, it now also has the financial capacity to own properties outright. In Italy, the company has partnered with Kryalos SGR to establish a local property investment vehicle.
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Scaling a flexible hospitality ecosystem
Led by CEO Ignacio Requena, Room00 blends design, local culture, and tech to create modern, flexible accommodations tailored to urban travelers. Its current portfolio includes over 2,500 rooms and 50 assets across Spain and Portugal, operating under brands such as Room00 Hostels, Toc Hostels, Room Select Hotels, and LETOH LETOH.
The company now aims to grow its portfolio to 200 assets and 15,000 rooms across Southern Europe, with additional plans to enter the London market with 1,000 rooms by the end of 2025.
A bold vision for urban hospitality
“This investment validates our vertically integrated model and positions us to accelerate growth, attract top talent, and expand into new opportunities,” said Requena. The company envisions becoming the dominant player in the Southern European lifestyle hospitality market.
The deal marks a major milestone for Europe’s hospitality sector, as Room00 sets out to transform urban travel with a scalable, tech-enabled model focused on prime micro-locations.
