King Street Invests €400 Million in Room00 Group

King Street Capital Management (“King Street”), a leading global alternative investment firm, has announced a strategic equity investment of up to €400 million in Room00 Group (“Room00”), Southern Europe's leading urban lifestyle hospitality platform.

King Street’s investment will support Room00’s pan-European expansion strategy, allowing the company to continue its accelerated development in key markets such as Spain, Portugal and Italy. The funding will primarily be used to acquire and hotel properties in prime micro-locations in cities including Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Florence. As such, Room00 will continue to rely on its existing growth model based on leases and hotel management agreements, with the capacity now to acquire properties directly. In Italy, Room00 has selected Kryalos SGR to set up an Italian property investment vehicle.

Room00’s ecosystem of more than 2,500 rooms and 50 assets in operation or under development operate under a portfolio of brands designed to appeal to different profiles of the modern traveler: Room00 Hostels, Toc Hostels, room Select Hotels and LETOH LETOH. Each brand responds to a growing demand for authentic experiences, contemporary design and prime urban locations. Room00 intends to grow its portfolio to 200 assets and 15,000 rooms in the next four years across Southern Europe, plus another 20 assets and 1,000 rooms in London, which the company is negotiating to enter with its first asset by the end of 2025.

"We view Room00 as one of the strongest, most innovative and scalable platforms in the European hospitality landscape,” said Paul Brennan, Partner and Co-Head of Real Estate at King Street. “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.”

"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," said Ignacio Requena, Founder & CEO of Room00 Group.

Room00 was advised by GRC IM and CBRE Investment Banking. Garrigues, Cuatrecasas and Across Legal served as legal advisors to the company. Uría Menéndez and Allen & Overy Shearman served as legal advisors to King Street. EY provided financial due diligence and PwC advised on tax structuring.

About King Street Capital Management

King Street is a global alternative investment firm founded in 1995, managing over $28 billion in assets across public and private markets. The firm combines deep fundamental research with tactical trading expertise and differentiated sourcing capabilities to uncover dislocations and mispriced opportunities across asset classes and throughout the capital structure.

King Street Real Estate focuses on debt and equity investments in special situations and thematic platforms. Our special situations strategy identifies compelling risk-adjusted investment opportunities across the capital structure, in high-quality real estate assets in major markets. Our exclusive, thematic platforms are built around property sectors with compelling secular tailwinds. Since its inception, King Street has completed transactions totaling $20 billion in real estate securities and real estate-related investments.

For more information, please visit www.kingstreet.com.

About Room00 Group

Room00 is Europe's leading lifestyle urban hospitality platform, with an approach that combines design, local expertise and technology to offer unique accommodation in prime locations. The company operates with its own flexible brands, aimed at the urban traveler seeking authenticity and comfort. Currently present in Spain, Portugal and Italy ROOM00 GROUP is in the process of expanding throughout Europe.