The hostels and boutique hotels platform Room00 Group and Dorsa Holding Group have acquired 100% of the shares of TOC Hostels from Ignacio Catalán and Salvador Torrens. The value of the transaction is 20 million euros.
Thus, Room00 Group will end the year with a total of 30 establishments open and 20 in development in three countries. This will bring the total number of rooms to 2,260, of which 900 are currently under construction.
The acquisition will consolidate and expand the Toc Hostels brand in Spain, Portugal and Italy, and is expected to generate a turnover of at least 70 million euros in its first year. The combination of the two companies is also expected to generate operational efficiencies, cost reductions and improved services.
The aim is also for the company to increase its geographical presence in cities such as Madrid, Barcelona, Seville, Malaga, Granada and Valencia.
Room00 Group will also expand its current portfolio with a fourth brand, which will be added to Room007 Hostels, aimed at a young audience whose preferences are focused on location and value for money; Room007 Select, boutique hotels focused on a family audience with higher standards of quality and comfort; and Letoh Letoh, a hotel concept focused on the customer experience, encouraging participation in specific activities and ‘life-shop’ proposals.
"The acquisition strengthens the position of Hostels & Hotels as a leader in the sector, increasing its visibility, recognition and market share, representing a significant consolidation in the urban accommodation sector in the European market", said Ignacio Requena, CEO and founder of Room00 Group, who assures that the acquisition provides both companies with “competitive advantages and new growth opportunities”.
The transaction has been advised by the Investment Banking area of CBRE, as well as by Juan Busquets and Sonia Sclapers of Busquets Abogados on the buying side, and by Álvaro Hernández Puértolas of Net Craman on the selling side.