Room00 to Invest Up to €420 Million in European Expansion

Room00 is planning a major European expansion with up to €420 million in investment, targeting key urban destinations across Spain, Italy, Portugal and the UK.

By Eleanor Price | Edited by Yuliya Karotkaya Published: Updated:
Room00 to Invest Up to €420 Million in European Expansion
Urban hospitality is entering a new growth phase as investment shifts toward flexible, design-led accommodation in major European cities. Photo: Room00

Room00 is accelerating its expansion across Europe with a major investment plan that reflects growing demand for flexible, design-led urban accommodation. The company has outlined a strategy to deploy between €330 million and €420 million throughout 2026, targeting key cities across Spain, Italy, Portugal and the United Kingdom.

The plan includes the addition of 20 new properties and more than 1,400 rooms, reinforcing Room00’s ambition to build a large-scale network of urban hospitality assets across Europe’s most dynamic destinations. Backed by a €400 million funding round completed in 2025, the company is positioning itself to capitalize on shifting travel patterns, particularly among younger and experience-driven travelers.

Room00’s expansion is not limited to organic growth. A significant portion of the investment will focus on acquiring and repositioning existing hotels and hostels, allowing the company to scale more rapidly while adapting assets to its brand standards and operational model.

Focus on Prime Urban Markets

The expansion strategy is heavily concentrated in major European cities where international demand remains strong. Spain will continue to play a central role, with eight new properties planned across Madrid, Barcelona, Valencia and Malaga. The country is expected to receive between €100 million and €120 million in investment, adding approximately 650 rooms to the network.

Italy represents another key market, with €120 million to €140 million allocated to projects in Rome, Florence and Milan. These developments are expected to deliver four new properties and more than 300 additional rooms, strengthening Room00’s presence in one of Europe’s most established tourism destinations.

Portugal will also see continued growth, particularly in Lisbon and Porto, where three new properties will add over 200 rooms. Meanwhile, the company is preparing to enter the UK market with a focus on London, one of the most competitive hospitality markets globally. Plans include five properties across neighborhoods such as Bloomsbury, Paddington, St Paul’s and Victoria.

The geographic spread of the investment highlights a deliberate focus on high-demand urban centers, where a mix of tourism and business travel supports year-round occupancy.

Repositioning Assets for a New Travel Model

A defining feature of Room00’s strategy is its emphasis on repositioning existing properties. Approximately 80 percent of the planned capital will be allocated to acquiring operational hotels and hostels with the potential for improvement, while the remaining 20 percent will support new developments in strategic locations.

This approach allows the company to respond quickly to market opportunities while minimizing development risk. By upgrading design, technology and guest experience, Room00 aims to align these properties with evolving traveler expectations, particularly among millennials and Generation Z.

The company’s portfolio includes multiple brands tailored to different segments, ranging from design-focused hostels to boutique hotels and lifestyle-driven accommodation concepts. This flexibility enables Room00 to adapt to a wide range of urban markets while maintaining a consistent brand identity.

Looking ahead, the group aims to scale its portfolio to 200 properties and 15,000 rooms within the next four years. The current investment cycle is a key step toward that goal, reflecting both confidence in European urban tourism and a broader shift toward experience-oriented hospitality.

As travel demand continues to recover and diversify, Room00’s expansion strategy underscores a growing trend in the industry: the transformation of existing urban assets into modern, flexible accommodation designed for a new generation of travelers.