Europe: Urban hospitality brand Room00 plans to add 20 properties, representing more than 1,400 rooms, across Spain, Italy, Portugal, and the UK this year.
The plan, which could see investments ranging between €330 million and €420 million throughout 2026, will focus on acquiring and repositioning urban hospitality assets.
Around 80 per cent of the capital will be allocated to purchasing hostels and hotels already in operation, while the remaining 20 per cent will be directed towards “strategic developments”.
The strategy is backed by the €400 million funding round led by international investment fund Kings Street, completed in 2025.
It will support the goal of reaching 200 properties and 15,000 rooms in the Room00 European portfolio over the next four years.
Ignacio Requena, CEO of Room00, said: “Of the total planned investment, around 80 per cent is already in advanced stages of execution, including assets under exclusivity agreements or in due diligence processes, while approximately 30 per cent of the pipeline has already been secured. This level of progress provides strong visibility over capital deployment and the transaction timeline for the year.
“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,” he added.
In London, Room00 plans to add five properties spanning 220 rooms across Bloomsbury, Paddington, St Paul’s and Victoria.
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.”
A large portion of the investment, between €120 and €140 million, will concentrate on Italy. The company expects to add four properties representing 334 additional rooms.
In Portugal and Spain, Room00 will add approximately 217 rooms (three properties) and 650 rooms (eight properties) respectively. Investment in Spain is expected to range between €100-€120 million.
Currently, there are more than 65 operational or in-development assets in the Room00 portfolio. Its brands include: Room00 Hostels, TOC Hostels, Room Select Natural Hotels, and LETOH.
Highlights:
- Room00 plans a €330–€420 million investment in 2026 to expand its boutique hotel and hostel platform across Spain, Italy, Portugal and the UK.
- The expansion strategy targets adding 20 properties with over 1,400 rooms, focusing on acquiring and repositioning existing urban hotels and hostels alongside selective development projects.
- Backed by a €400 million funding round led by Kings Street, Room00 aims to scale its European portfolio to 200 properties and 15,000 rooms within four years.
- In London, the company plans five properties totalling 220 rooms across Bloomsbury, Paddington, St Paul’s and Victoria.
- Across Italy (334 rooms), Spain (650 rooms), and Portugal (217 rooms), expansion will involve the addition of 15 properties.
