Spanish hostel and boutique hotel platform, Room00 Group, has acquired local hostel operator TOC Hostels from Ignacio Catalán and Salvador Torrens for approximately €20 mln.
With TOC Hostels' acquisition, Room00 Group's total number of rooms will reach 2,260, including 900 currently under construction.
This expansion will strengthen the Toc Hostels brand's presence in Spain, Portugal, and Italy, aiming for a turnover of at least €70 mln in the first year post-acquisition. The combination of the two companies is expected to generate operational efficiencies, cost reductions, and improved services.
The purchase of TOC Hostels will enable Room00 Group to increase its market share in key cities like Madrid, Barcelona, Seville, Malaga, Granada, and Valencia. Additionally, the acquisition will introduce a fourth brand to its portfolio, which currently includes Room00 Hostels (aimed at a young public), Room Select (boutique hotels for families), and Letoh Letoh (hotel concept), catering to a wider range of customer preferences and budgets.
Ignacio Requena, CEO and founder of Room00 Group, said: ‘The combination of both companies will generate operational efficiencies, cost reduction and service improvement. The acquisition of TOC Hostels by Room00 Hostels has the potential to significantly transform both companies and the market in which they operate, providing competitive advantages and new growth opportunities.’
CBRE’s Investment Banking area and Busquets Abogados advised the buyer, while Net Craman acted for the seller.
Founded by Ignacio Requena, Room00 Group has witnessed substantial growth in recent years. The platform is targeting a 2024 turnover of €80 mln by opening 27-30 new establishments and up to 15 under development. The expansion will increase the total number of rooms to over 2,500.
