In European city centres, travellers often face a tough choice — pay a premium for well-located hotels or compromise on comfort. At the same time, hotel operators struggle with high construction and maintenance costs, making it difficult to deliver both value and quality. Madrid-based Room00 is flipping this narrative by turning overlooked urban properties into sleek, affordable, and tech-savvy hostels and hotels — all while expanding rapidly across Southern Europe.
Room00 just secured a game-changing €400 million investment from King Street Capital Management, a global investment firm known for backing high-impact real estate ventures. With this fresh capital, Room00 plans to fast-track expansion in key European cities, including Madrid, Barcelona, Lisbon, Porto, Milan, Rome, and Florence. The funding will go directly toward acquiring and renovating hotel properties in central locations, moving the company beyond lease-based operations to owning prime real estate.
Backed by King Street and local real estate specialist Kryalos SGR in Italy, Room00 is set to deepen its footprint in the Southern European hospitality market with a focus on sustainability, urban regeneration, and tech-driven efficiency. King Street’s Paul Brennan describes the platform as “one of the most scalable and innovative in Europe,” signalling confidence in Room00’s ability to reshape the hospitality experience.
From Hostels to Hybrid Hotels: Room00’s Tech-Driven Model Gains Traction
Founded in 2012 by CEO Ignacio Requena, Room00 was born out of a desire to bring quality, centrally located, and design-led accommodations to budget-conscious travellers. Whether it’s digital nomads, solo adventurers, or families, the brand caters to modern travellers who expect both affordability and experience. Today, Room00 operates more than 2,500 rooms across 50+ properties under its three distinct brands: Room00 Hostels, Room Select Hotels, and LETOH LETOH.
The recent €20 million acquisition of TOC Hostels has strengthened Room00’s leadership in the hostel and boutique hotel segment. But what truly sets Room00 apart is its hybrid model — blending the social, community-driven vibe of hostels with the comfort, privacy, and aesthetics of boutique hotels. Each location features contemporary interiors, high-speed Wi-Fi, shared lounges, and a guest-first service culture.
The tech-enabled operating model ensures operational efficiency and allows Room00 to scale faster than traditional hoteliers. By digitising core processes and embracing automation, Room00 keeps costs low without compromising on guest experience.
Room00’s growth plan is as ambitious as it is strategic. The company is aiming for 200 properties and 15,000 rooms within four years. A launch into the London market is planned by 2025, marking its entry into Northern Europe. With strong financial backing and a scalable model, Room00 is positioning itself to be a category leader in a competitive space populated by names like Generator Hostels, Safestay, TSH, and Meininger.
Requena sees the investment as validation of Room00’s vertically integrated strategy, one that combines hotel operations, tech, real estate acquisition, and guest services into one cohesive platform. As he puts it, this funding “will allow us to accelerate growth, attract top talent, and open the door to new investor partnerships that align with our long-term vision.”
