Strategic Acquisition Expands Market Presence and Portfolio Across Europe
Room00 Group, the leading platform for hostels and boutique hotels in the Iberian Peninsula, has announced the acquisition of 100% of the shares of TOC Hostels from Ignacio Catalán and Salvador Torrens for approximately €20 million. This significant move positions Room00 Group as the largest hostel chain in Europe, marking a major expansion in its market presence and geographical reach.
Expansion and Development
With this acquisition, Room00 Group will close the year with a robust portfolio of 30 establishments currently open and an additional 20 in development across Spain, Portugal, and Italy. The group’s total room count will rise to 2,260, with 900 rooms still under construction. This expansion is projected to drive a turnover of at least €70 million in its first year, underscoring the strategic importance of this acquisition in bolstering Room00 Group’s market position.
Enhancing Brand Presence
The integration of TOC Hostels into Room00 Group’s portfolio will significantly enhance the brand’s visibility and influence across Europe. Room00’s existing brands—Room00 Hostel, Room Select Hotels, and LETOH LETOH—will now be complemented by the addition of TOC Hostels, creating a more diverse and expansive offering for customers. The acquisition will also introduce a new brand to the Room00 Group, further broadening its geographical footprint to include key cities such as Madrid, Barcelona, Seville, Malaga, Granada, and Valencia.
Ignacio Requena, CEO and founder of Room00 Group, commented on the acquisition: “This acquisition reinforces our leadership in the hostel and hotel sector, enhancing our market visibility, recognition, and overall market share. It represents a significant consolidation within the urban hospitality sector across Europe. By integrating TOC Hostels into our portfolio, we are poised to achieve operational efficiencies, reduce costs, and improve our service offerings. The synergy created by this merger is expected to bring about transformative changes for both companies and the market at large, providing us with new competitive advantages and growth opportunities.”
Operational Synergies and Customer Benefits
The acquisition of TOC Hostels allows Room00 Group to offer a broader range of options to its clients, catering to varying preferences and budgets. Each hostel chain within the group has its unique characteristics, including design, services, and customer experience, which will be leveraged to provide an enhanced and diversified offering. This strategic expansion is aimed at meeting the growing demand for high-quality, affordable accommodation across Europe.
Advisory and Transaction Details
The acquisition was facilitated with expert guidance from the Investment Banking division of CBRE, a leading international real estate consulting and services firm. Legal advisory for the purchasing side was provided by Juan Busquets and Sonia Sclapers of Busquets Abogados, while Álvaro Hernandez Puertolas from Net Craman represented the selling side. This comprehensive advisory support ensured a smooth transaction process and successful integration of TOC Hostels into Room00 Group’s expanding portfolio.
Emerging Opportunities
The acquisition of TOC Hostels represents a strategic milestone for Room00 Group, marking its emergence as Europe’s foremost hostel chain. With an extensive network of properties and a diversified portfolio, Room00 Group is well-positioned to capitalize on emerging opportunities in the urban hospitality sector and continue its growth trajectory across the continent.
