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In a major development for the European hospitality sector, Room00 Group, the leading platform for hostels and boutique hotels in the Iberian Peninsula, along with the Dorsa Holding Group, has acquired 100% of the shares of TOC Hostels from Ignacio Catalán and Salvador Torrens. The acquisition, valued at approximately 20 million euros, positions the combined entity as the largest hostel chain in Europe and heralds a new era of expansion and consolidation in the urban hospitality market.
Following this acquisition, Room00 Group will end the year with a total of 30 open establishments and 20 more in development, spanning across Spain, Portugal, and Italy. The chain will boast 2,260 rooms, with 900 currently under construction. This substantial growth reflects the ambitious plans to enhance the company’s footprint across key European cities including Madrid, Barcelona, Seville, Malaga, Granada, and Valencia.
The purchase of TOC Hostels will enable Room00 Group to consolidate and expand the TOC brand, leveraging its strong presence to boost the group's overall turnover, which is projected to reach at least 70 million euros in the first year post-acquisition. The addition of TOC Hostels will also introduce a new brand to Room00 Group’s portfolio, which currently includes Room00 Hostel, Room Select Hotels, and LETOH LETOH.
Ignacio Requena, CEO and founder of Room00 Group, emphasised the strategic importance of the acquisition, stating, "The acquisition strengthens our position as a leader in the sector, enhancing our visibility, recognition, and market share. This move represents a significant consolidation in the urban hospitality sector in Europe. By integrating TOC Hostels, we are poised to achieve operational efficiencies, reduce costs, and enhance service quality, which will drive competitive advantages and open new growth opportunities."
The merger will allow Room00 Group to offer clients a broader range of options, accommodating diverse preferences and budgets with various hostel concepts. Each brand within the group maintains distinct characteristics in terms of design, services, and customer experience, ensuring a comprehensive portfolio that caters to various market segments.
The acquisition process was supported by CBRE’s Investment Banking area, renowned for its expertise in real estate consulting and services. Legal advisors for the deal included Juan Busquets and Sonia Sclapers from Busquets Abogados for the purchasing side, and Álvaro Hernandez Puertolas from Net Craman for the selling side.
This strategic acquisition is set to redefine the landscape of hostel accommodation in Europe, marking a transformative step for Room00 Group and solidifying its leadership in the urban hospitality market.
