Global investment firm King Street Capital Management has announced a strategic equity investment of €400m in hospitality firm Room00 Group for its expansion plans across Europe.
Following the investment from King Street, Room00 plans to expand its portfolio by adding 20 properties and 1,000 rooms in London, with negotiations underway to secure its first site in the city by the end of 2025.
Over the next four years, the company also aims to scale its presence across Southern Europe, targeting a total of 200 properties and 15,000 rooms.
Room00 will continue its current growth strategy, focused on leases and hotel management agreements, while now also having the ability to directly acquire properties.
Its portfolio comprises over 2,500 rooms and 50 assets, either operational or in development, and spans a portfolio of brands tailored to various segments of today’s travellers: Room00 Hostels; Toc Hostels; room Select Hotels; and LETOH LETOH.
Ignacio Requena, founder and chief executive of Room00 Group, said: “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”.
Room00 was advised by GRC IM and CBRE Investment Banking.
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