Room00, a hospitality startup based in Madrid, is shaking up the way people experience city stays. By turning unused urban spaces into sleek, tech-enabled hotels and hostels, it offers stylish, affordable accommodation in top European locations. This week, the company secured €400 million in funding from King Street Capital Management to scale its presence across Europe.
The investment will fuel Room00’s expansion in cities like Madrid, Barcelona, Lisbon, Porto, Milan, Rome, and Florence. Instead of relying only on leases or management deals, Room00 will use the funds to directly acquire and renovate properties. This move marks a major step in its growth journey.
King Street’s backing highlights Room00’s rising status in the hospitality space. Paul Brennan, Partner and Co-Head of Real Estate at King Street, described the company as one of the most scalable and innovative platforms in the industry. In Italy, Room00 has joined forces with Kryalos SGR to create a new investment vehicle. This partnership combines Kryalos’ deep real estate knowledge with Room00’s modern hospitality model.
Founded in 2012 by CEO Ignacio Requena, Room00 was built to serve a growing demand. Many travelers today want affordable, well-designed places to stay in city centers. Room00’s answer? A portfolio that spans hostels, boutique hotels, and hybrid concepts under brands like Room00 Hostels, Room Select Hotels, and LETOH LETOH.
Its portfolio now includes over 2,500 rooms and 50 properties either running or under development. Room00 recently acquired TOC Hostels for €20 million, strengthening its position as a leader in urban hospitality. The company plans to scale rapidly, aiming to reach 200 assets and 15,000 rooms across Southern Europe within four years. A London launch is also on the horizon for 2025.
Room00’s success lies in its hybrid hospitality model. It merges the fun, social vibe of hostels with the comfort and design of boutique hotels. Guests enjoy fast Wi-Fi, clean modern interiors, and inviting shared spaces. This approach appeals to today’s value-conscious traveler—especially those who want experience and comfort without high prices.
Unlike some of its competitors—Generator Hostels, The Student Hotel, or Meininger—Room00 places tech and modular design at its core. It optimizes operations through automation while still focusing on guest experience. Its asset-light model makes it easy to scale, while its tech stack keeps costs low and service high.
The partnership with King Street and Kryalos isn’t just about money. It also brings strategic expertise in complex real estate markets. Together, they aim to breathe new life into older buildings, repurpose urban spaces, and support sustainable hospitality. Room00’s focus on renovation over new construction aligns with Europe’s sustainability goals and helps preserve city charm.
As Requena explains, this investment validates Room00’s vision as a fully integrated hotel operator and investor in Southern Europe. With strong capital and clear goals, the company is now ready to grow fast, attract top talent, and collaborate with partners who share its long-term outlook.
Room00 is more than just another hospitality brand. It’s redefining what affordable urban travel looks like—and setting new standards for quality, design, and value in Europe’s most dynamic cities.
