Portugal is set to gain 40 million euros in hospitality investment. This is part of a larger 400 million euro funding deal from US-based King Street Capital Management to Room00, a Spanish hotel group. Room00 is growing quickly across Southern Europe. The 40 million euro will focus on Portugal, highlighting the country’s growing importance in regional tourism. Cities like Lisbon and Porto are key targets for buying and redeveloping urban hotels. The investment will help Room00 expand its portfolio of boutique hotels and hostels in popular European destinations.
King Street Capital Management’s commitment of up to 400 million euros shows strong confidence in Europe’s urban hospitality market. The funding will support Room00, a fast-expanding hotel and hostel operator with a strong presence in the Iberian Peninsula. Portugal will receive around 40 million euros from this total, which will help Room00 accelerate its growth across Southern Europe.
The funding will be used to buy, renovate, and develop hotel properties in prime city locations. Room00 plans to grow quickly by targeting popular tourism hubs in Portugal, Spain, Italy, and the United Kingdom. Through this growth, the company aims to offer affordable, modern, and well-located hotels that meet the needs of different travelers.
Portugal’s Share of the Investment
About 10% of the total 400 million euros, or 40 million euros, is set aside for Portugal. This shows Room00’s strong interest in Portugal’s tourism market, especially in Lisbon and Porto. These cities have become major centers for tourism and investment in recent years. They attract steady visitors throughout the year from both inside Portugal and abroad.
The investment in Portugal will mainly go toward buying existing hotel properties in prime city areas. Room00 will then renovate these properties into modern hotels under its brand. The company wants to combine stylish design with practical features to appeal to a wide range of guests. This includes budget travelers as well as those looking for a lifestyle-focused experience.
Room00 has not yet named the local real estate partner for its Portugal projects. However, the company is actively seeking a partner with local expertise. This approach matches Room00’s strategy in other countries, where it works with local partners to gain market knowledge while following a unified growth plan.
Expansion in Spain, Italy, and the UK
The majority of the investment will support Room00’s wider expansion in Southern Europe. The company plans to increase its hotel portfolio significantly in Spain and Italy. Important cities include Madrid, Barcelona, Milan, Rome, and Florence. These locations are popular with tourists, have strong hospitality infrastructure, and attract high foot traffic.
In Spain, Room00 will continue expanding its presence in Madrid and Barcelona. The company also plans to explore opportunities in other busy cities. The funds will be used to acquire new properties and renovate existing ones, especially those in central or historically important areas. By upgrading these properties, Room00 aims to boost its brand visibility and keep hotel rooms occupied all year.
In Italy, Room00 has teamed up with Milan-based Kryalos SGR. Kryalos has experience managing property investments. This partnership will help Room00 acquire and develop hotels in key Italian cities. The goal is to build a strong presence in Italy’s major tourist markets.
Meanwhile, Room00 is preparing to enter the competitive UK market. The company plans to open its first hotel in London by the end of the year. Over the next four years, Room00 aims to acquire 20 properties totaling 1,000 rooms in London. This will be the group’s first step into the British market and is expected to support further growth across Western Europe.
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