The Spanish urban hospitality platform, built around the values and behaviours of millennial and Gen Z travellers makes its UK debut with five properties across Bloomsbury, Paddington, St Paul’s and Victoria, as part of a €330–420 million European expansion plan for 2026.
Room00, one of Southern Europe’s fastest-growing urban hospitality platforms, has announced its entry into the United Kingdom market with a planned investment of between €50 million and €80 million in London in 2026. The company will open five new properties across Bloomsbury, Paddington, St Paul’s and Victoria, adding approximately 220 rooms to the city, in a move that marks the group’s first operational presence in Britain.
The London launch forms part of a broader €330–420 million European investment programme, backed by the €400 million funding round completed in 2025 and led by international investment fund Kings Street. The full plan will add 20 new properties and more than 1,400 rooms across Spain, Italy, Portugal and the United Kingdom throughout the year.
Built for the next generation of travellers
Room00 was founded in Madrid in 2012 on a thesis that has since proved prescient: that a new generation of travellers, today’s millennials and Gen Z, would demand more than a choice between a budget hostel and an impersonal chain hotel. They would expect design, prime city-centre locations, authentic neighbourhood identity, technology-enabled service and flexible hybrid spaces — all at a price point accessible to young, experience-driven travellers.
Today, that model is the foundation of a platform that operates over 65 assets across Spain, Italy and Portugal, hosted more than 1.1 million guests in 2025, and has grown revenue from €40 million in 2023 to over €80 million annualised in 2026.
Ignacio Requena, Founder & CEO, Room00 Group, said:
“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.”
London, the next strategic step
Room00 has identified London as the most significant strategic market for its next phase of European growth. With five properties planned across some of the city’s most culturally distinct and well-connected neighbourhoods — Bloomsbury, Paddington, St Paul’s and Victoria — the group’s entry is designed to bring its neighbourhood-rooted, design-led model to a city whose identity maps closely onto how Room00 develops each asset.
Kaho Ha, Chief Investment Officer, Room00 Group, said:
“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.”
A multi-brand platform
Room00 operates through a portfolio of complementary brands, each designed for a distinct traveller profile and experience type:
- Room00 Hostels — Design-led urban hostels for young, experience-first travellers
- TOC Hostels — A “classy hostel” concept offering elevated services and curated social spaces (acquired 2024)
- Room Select Natural Hotels — Boutique hotels in prime urban locations
- LETOH — A lifestyle brand focused on wellbeing and experiential travel
Properties are designed to integrate hybrid spaces — including coworking areas, specialty coffee, restaurants and rooftops — reflecting how Gen Z travellers inhabit spaces beyond the traditional guest room.
European scale and ambition
The 2026 investment programme — totalling between €330 million and €420 million — encompasses four markets. Approximately 80% of the total pipeline is already in advanced stages of execution, with around 30% of assets already secured. The full European breakdown:
- United Kingdom (London): €50 – 80M | 5 properties | ~220 rooms | Bloomsbury, Paddington, St Paul’s, Victoria
- Italy: €120–140M | 4 properties | ~334 rooms | Rome, Florence, Milan
- Portugal: €60–80M | 3 properties | ~217 rooms | Lisbon, Porto
- Spain: €100–120M | 8 properties | ~650 rooms | Madrid, Barcelona, Valencia, Málaga
The developments are expected to add more than 750,000 additional potential guests annually to the group’s network. Room00’s long-term ambition is to reach 200 properties and 15,000 rooms across Europe within four years.
