Room00 secures $449.7m investment from King Street for European expansion

GlobalData

Tue, May 13, 2025, 7:42 AM 2 min read

European urban lifestyle hospitality platform Room00 Group has received an investment of up to €400m ($449.7m) from King Street Capital Management to support its pan-European expansion.

This strategic equity investment is set to support Room00's expansion strategy, particularly in key markets such as Portugal, Spain and Italy.

The funds from King Street will primarily facilitate the acquisition of hotel properties in prime locations such as Barcelona, Florence, Lisbon, Madrid, Milan, Porto and Rome.

Room00 plans to leverage its existing growth model, which includes leases and hotel management agreements, and the new capital will now enable the company to directly acquire properties.

In Italy, Room00 has partnered with Kryalos SGR, an independent private AIFMD-regulated fund manager, to establish a property investment vehicle.

The group's ecosystem currently encompasses more than 2,500 rooms and 50 assets, either operational or under development, spread across a portfolio of brands including Room00 Hostels, Toc Hostels, room Select Hotels, and LETOH LETOH.

Room00 aims to expand its portfolio to 200 assets and 15,000 rooms within the next four years throughout Southern Europe.

Additionally, the company is in talks to establish a presence in London with an initial 20 assets and 1,000 rooms, aiming to secure its first property in the city by the end of this year.

King Street partner and real estate co-head Paul Brennan said: "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."

Advisory services for Room00 were provided by GRC IM and CBRE Investment Banking, with Garrigues, Cuatrecasas, and Across Legal offering legal counsel.

King Street was advised by Uría Menéndez and Allen & Overy Shearman while EY conducted financial due diligence and PwC provided tax structuring advice.

In November 2023, King Street Capital Management and Kronos Homes completed the sale of Palmares Ocean Living & Golf resort in Portugal to funds under the management of Arrow Global.

"Room00 secures $449.7m investment from King Street for European expansion" was originally created and published by Hotel Management Network, a GlobalData owned brand.

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