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Room00 Next Gen Hospitality has announced it is investing between €330m (£285m) and €420m (£313.5m) during 2026 to expand its operations across Southern Europe and a debut in London.
It comes as the Spanish company, which aims to add 20 properties and 1,421 rooms to its portfolio, completed a €400m (£298m) funding round in 2025 led by the international investment fund Kings Street.
Room00 plans to spend between €50m (£37m) and €80m (£59m) in London. It has identified sites in Bloomsbury, Paddington, St Paul’s and Victoria for five new buildings.
The group will also allocate up to €140m (£104.5m) for projects in Italy. Further investments are planned for Lisbon and Porto in Portugal and several Spanish cities.
According to Room00, approximately 80% of its capital is designated for the acquisition and repositioning of existing hostels and hotels. The remainder will fund new developments.
Current assets under the group include the brands Room00 Hostels, TOC Hostels, Room Select Hotels and LETOH. It aims to reach 200 properties.
Ignacio Requena, chief executive of Room00, said: “Of the total planned investment, around 80% is already in advanced stages of execution, including assets under exclusivity agreements or in due diligence processes, while approximately 30% of the pipeline has already been secured. This level of progress provides strong visibility over capital deployment and the transaction timeline for the year.
“We are currently at a very interesting moment to invest in urban hospitality in Europe. 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.”
Kaho Ha, chief investment officer at Room00, added: “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.”
