Room00 Next Gen Hospitality is accelerating its European expansion with a new investment programme of between €330m and €420m to be executed throughout 2026 across Spain, Portugal, Italy and the UK.
The strategy includes the addition of 20 new properties and 1,421 additional rooms in some of Europe’s most dynamic urban destinations and marks the group’s operational entry into London.
The plan is supported by an initial €400m funding round completed in 2025, led by alternative investment manager King Street.
Ignacio Requena, CEO of Room00, said: “Of the total planned investment, around 80% is already in advanced stages of execution, including assets under exclusivity agreements or in due diligence processes, while approximately 30% of the pipeline has already been secured. This level of progress provides strong visibility over capital deployment and the transaction timeline for the year.”
The investment strategy will focus primarily on the acquisition and repositioning of urban hospitality assets. Specifically, 80% of the capital will be allocated to the purchase of hostels and hotels already in operation with potential for operational optimisation and improved profitability, while the remaining 20% will be directed towards strategic developments aligned with the platform’s expansion in prime urban locations, Room00 said.
“We are currently at a very interesting moment to invest in urban hospitality in Europe. There is a clear opportunity to reposition well-located assets and adapt them to new travel patterns. Our goal is not simply to grow, but to build a coherent network of urban accommodation across Europe’s main capitals,” Requena added.
The plan also includes the company’s entry into the UK market. Room00 expects to invest between €50m and €80m in London to develop five new properties in Bloomsbury, Paddington, St Paul’s and Victoria, adding around 220 rooms.
Kaho Ha, chief investment officer of Room00, said: “London is one of the most attractive urban hospitality markets in the world and fits perfectly with our model. The city combines strong international demand with neighbourhoods that have a very distinctive identity, something that aligns closely with the way we develop each asset.”
Room00 plans to invest between €120m and €140m to projects in Italian cities such as Rome, Florence and Milan. In this market, the company expects to add four new properties representing around 334 additional rooms.
Portugal will be another focus of growth for the group, with investments estimated between €60m and €80m primarily in Lisbon and Porto, where three additional assets are expected to add approximately 217 rooms.
Spain will remain one of the key markets within the group’s expansion strategy. Room00 plans to invest between €100m and €120m in the country during 2026, focusing mainly on Madrid, Barcelona, Valencia and Málaga.
Room00 said this latest growth spurt will consolidate its position as “a leading next-generation urban hospitality platform, focused primarily on millennial and Generation Z travellers” and combining design, technology, flexibility and central urban locations.
The company operates through a platform of complementary brands designed for different traveller profiles and experiences. These include: Room00 Hostels, focused on design-led urban hostels for young travellers; TOC Hostels, a “classy hostel” concept offering enhanced services and social spaces; Room Select Natural Hotels, boutique hotels located in prime urban locations; and LETOH, the group’s lifestyle brand focused on wellbeing and experiential travel.
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