The real estate arm of King Street Capital Management is investing up to €400m in Southern European urban lifestyle hospitality platform Room00.
King Street said the equity investment will mainly support Room00’s pan-European expansion strategy, allowing the company to acquire hotel properties in cities including Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence.
Room00 is currently present in Spain, Portugal and Italy, with a hotel and hostel portfolio including over 2,500 rooms across 50 operational or development assets. The company expects to expand its portfolio to 200 assets and 15,000 rooms within the next four years, focusing on Southern Europe.
Room00 said it is also in talks to enter the London market with its first asset by the end of 2025, aiming for a portfolio of another 20 assets and 1,000 rooms in the UK capital.
Room00 has also appointed Kryalos SGR to set up an Italian property investment vehicle to help with its property investment plan.
Paul Brennan, partner and co-head of real estate at King Street, 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.”
Ignacio Requena, founder and CEO of Room00, 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.”
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