Room00 Raises $450 Million to Expand Its Urban Hotels and Hostels Across Europe

With new funding secured, Room00 plans to expand quickly, but it says it won't forget its niche.

Madrid-based Room00, known for its hostels and compact hotels, has secured €400 million (about $450 million) to accelerate its European expansion and buy properties outright for the first time.

"This capital changes our business model a little bit," founder and CEO Ignacio Requena told Skift. “At the beginning, we were an asset-light company. With this capital, we have the opportunity to buy properties.”

Room00 has relied on leases and hotel management agreements to expand