Although there are more and more ways to travel, some remain in the imagination with little change. For example, the hostels where hundreds of pilgrims complete the Camino de Santiago each year stay: large rooms with several bunk beds, closets to store belongings, and common areas including bathrooms. What would you think if you knew it existed? Accommodation of the same quality as hotelsHowever with the advantages of hostels?
Room 007 He claims that it is a clear example of a new idea emerging when everything seems to have been invented. Boutique hostel platform was born in 2012when these accommodations were not exploited and there were many small proprietors with very profitable but low-quality businesses.
For this reason They renovated the hostels. Their rooms have private bathrooms, air conditioning, cleaning and heating. “Our product is the hostel closest to the hotel, but there is an S between the two that separates them socially,” says Ignacio Requena, CEO and founder of the company. Hostels are a space where people share, meet and experience each other in community; This is a complicated situation in the hotel. “We took the best of the hostel community and put it into a hotelier-like product.”
Fewer backpackers
The traditional hostel has unchanging features. In their establishment it is possible to book free walking tours, tickets for concerts and flamenco shows, yoga classes and even museum visits. really? activities related to culture rather than parties, It is aimed to enrich the visit. Prices also vary depending on their product: they are cheaper than hotels, but also the most expensive in the hostel segment. “It’s expensive for traditional hotel people, but it’s cheap for hotel people,” says Requena.
Small differences in the traditional hostel management model also change the classical customer profile. “We have transformed the lifelong backpacker audience into families, groups, people who can travel alone and gain a competitive advantage over traditional hostels,” the Room 007 founder continues. ” And inevitably customers change too. Now, majority profile is an international tourist (80%), Between 18 and 40 years old, university graduateHe speaks several languages, is restless and at the same time feels that traveling is an obligation for him.
European leaders
Oda 007 started its journey with the first hostel in Madrid’s Las Letras district, and after more than 10 years, they now have a network of establishments spread across half of Spain (Madrid, San Sebastián, Bilbao, València, Seville and Malaga), as well as Portugal. (Lisbon and Porto) and Italy (Florence and Rome). They have 42 hostels in total, 20 of which are currently under construction.. They invoiced close to 45 million euros in 2023, and Requena guarantees that they have “doubled sales” for four years.
HE boutique hostels are raging is based on “Ignorance” of what a hostel is: “The number of people who realize that it is an alternative product to the hotel and that it does not have to be of poor quality is increasing day by day. Those who try it repeat it,” he emphasizes. For example, it grew by 300% in 2022.
The hostel platform closed a 5 million euro round at the end of June 2023 with Banco Santander’s Smart Fund, which was added to the 7.5 million equity capital it raised a few months ago. In total, the company 12.5 million euro financing obtained in the first half of 2023. Room 007 opted to grow “a little faster” by acquiring competitors as well as financial support from outside companies. The last operation took place in 2022 with the acquisition of Bluesock.
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Although this platform was not the first company to implement the boutique hostel business model, it was the first to develop it professionally on a large scale. “New competition emerges all the time, and we believe this is very positive because it reinforces a trend, allows you to evolve and attracts more viewers,” says the founder. He adds that since 2012 the offer in this market has been 10 times higher.
Your future plans are coming true to become European leaders. The company is taking small but solid steps for now. Requena says they will go wherever their customers go, “any European city where you can escape with your partner or friends.” In the short term, the goal is: Complete expansion through ItalyHe is also considering destinations such as Milan or Venice for later crossing to the UK. They haven’t looked at anything in France yet, but Paris will soon join the list of cities they’ve been to.