American investment firm King Street Capital Management has committed up to €400 million to Spanish hospitality group Room00, with around €40 million earmarked for projects in Portugal,

according to ECO.

The funding will support Room00’s expansion across Europe, particularly in Southern Europe, including Spain, Portugal, and Italy. The capital will be used primarily to acquire and renovate hotel properties in premium city-center locations such as Lisbon, Porto, Madrid, Barcelona, Milan, Rome, and Florence.

Founded in Madrid in 2012, Room00 operates a growing portfolio of boutique hotels and hostels, including brands like Room00 Hostels, Toc Hostels, Room Select Hotels, and Letoh Letoh. The company currently manages over 2,500 rooms across 50 assets and aims to grow to 200 properties and 15,000 rooms within four years. It also plans to expand into London with 20 assets and 1,000 rooms, launching its first unit there by year-end.

The new investment will allow Room00 to move beyond rental and management contracts, giving it the financial ability to directly acquire real estate. In Italy, Room00 has partnered with Milan-based Kryalos SGR to manage a dedicated real estate investment vehicle. A similar manager will be chosen for its operations in Portugal.

Room00 CEO Ignacio Requena said the investment validates the company’s model and will help drive strategic growth and talent acquisition. Paul Brennan, Co-Head of Real Estate at King Street, called Room00 “one of the most innovative and scalable platforms in European hospitality,” praising its integrated model and central urban focus.