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

GlobalData

Tue, May 13, 2025, 4:42 AM 2 min read

European municipality manner hospitality level Room00 Group has received an concern of up to €400m ($449.7m) from King Street Capital Management to enactment its pan-European expansion.

This strategical equity concern is acceptable to enactment Room00's enlargement strategy, peculiarly successful cardinal markets specified arsenic Portugal, Spain and Italy.

The funds from King Street volition chiefly facilitate the acquisition of edifice properties successful premier locations specified arsenic Barcelona, Florence, Lisbon, Madrid, Milan, Porto and Rome.

Room00 plans to leverage its existing maturation model, which includes leases and edifice absorption agreements, and the caller superior volition present alteration the institution to straight get properties.

In Italy, Room00 has partnered with Kryalos SGR, an autarkic backstage AIFMD-regulated money manager, to found a spot concern vehicle.

The group's ecosystem presently encompasses much than 2,500 rooms and 50 assets, either operational oregon nether development, dispersed crossed a portfolio of brands including Room00 Hostels, Toc Hostels, country Select Hotels, and LETOH LETOH.

Room00 aims to grow its portfolio to 200 assets and 15,000 rooms wrong the adjacent 4 years passim Southern Europe.

Additionally, the institution is successful talks to found a beingness successful London with an archetypal 20 assets and 1,000 rooms, aiming to unafraid its archetypal spot successful the metropolis by the extremity of this year.

King Street spouse and existent property co-head Paul Brennan said: "We presumption Room00 arsenic 1 of the strongest, astir innovative and scalable platforms successful the European hospitality landscape.

"Its afloat integrated operating exemplary and strategical absorption connected premier metropolis centre locations presumption it arsenic a invaluable spouse for our existent property maturation strategy successful Europe."

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

King Street was advised by Uría Menéndez and Allen & Overy Shearman portion EY conducted fiscal owed diligence and PwC provided taxation structuring advice.

In November 2023, King Street Capital Management and Kronos Homes completed the sale of Palmares Ocean Living & Golf edifice successful Portugal to funds nether the absorption of Arrow Global.

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

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