2023-06-21 06:04:46
Room007, a Madrid startup that operates as a platform for Hostels and Boutique Hotels in the Iberian Peninsula, has just closed a round of 5 million euros led by Banco Santander’s Smart Fund. It should be noted that this capital is included in a Framework contract to finance the expansion of the company up to a maximum of 25 million euros.
In fact, the goal of the startup is to complete this line in three years, “as long as we find interesting operations that generate and add value for the company”, in Nacho Requena’s assessments; CEO and founder, to this writing.
What is Room007
Room007 is a startup that offers “premium” locations in the main cities of the Iberian Peninsula and Italy. It bases its growth on the design of modern, quality, sustainable and technologically advanced establishments. “The main difference of a Hostel Versus a service like Airbnb is the social component. Both are totally valid and interesting models, but from our point of view the Hostel offers a component of community sociability and provides better engagement with the client”, Requena explains.
The Hostel model is a “super flexible” business model, which combines rooms, double triple family rooms or sales by bed, an element that makes it very different from Airbnb. In the Hostel you not only sleep or rest, but the client travels only the backpack. The traditional one knows the city and knows the other guests thanks to the common areas, the activities, the Walking tours and that social component that we have mentioned”.
In this way, the rooms that can be found on this platform “are designed for couples, families, groups and people traveling alone. The latter is surprising, but there are more and more people who prefer to travel alone rather than not travel. In the end the experience outweighs the impediments”.
According to the data provided, in 2022 the platform had 30 establishments “between open and under development. We believe that by the end of the 23rd we should be close to 40 always focused on Spain, Portugal, Italy”.
Second round
It should be noted that this startup raised 7.5 million euros a few months ago in an equity round, so the total financing in these six months reaches 12.5 million. The fund provides the necessary capital to the startup founded by Nacho Requena for its organic expansion and for making corporate purchases in Spain, Portugal and Italy, three markets in which they are already present. “This capital is going to be used for organic growth, the absorption of competitors and the improvement of the product and the team. Always with an eye on technology and sustainability”, highlights Requena.
The main objective of this investment will focus on the new openings scheduled for 2023 and 2024, which range from seven to ten new establishments. It should be noted that in the first half of the year stores have been opened in Rome, San Sebastián and Bilbao, while openings are planned for the second half of the year in Barcelona, Valencia, Rome and Lisbon.
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