Room2 – the self-described first “hometel brand” in the UK – is looking to spend up to £250m on expansion following the appointment of an investment partner.
Mark Harris, founder of investment business Orchard Grove Strategic Partners, will help raise the finance as Room2 looks to develop 5,000 operational or committed rooms by 2030.
Founded in 2015, Room2 currently has two sites open in Southampton and Hammersmith, with further properties in the pipeline in Manchester, Chiswick and Liverpool.
The business was the brainchild of brothers Robert and Stuart Godwin, who were inspired to create high quality, affordable accommodation which bridged the gap between home and hotels after spending years travelling as competitive dinghy sailors as members of the British Olympic Development Sailing Team.
They intended to offer flexibility and personalisation combing the best elements from Airbnb, serviced apartments and boutique hotels with kitchens in every room, the ability for guests to select their own type of mattress and keyless check-ins.
Robert Godwin, co-founder of room2, said: “Having successfully established two operating hometels which are performing very strongly, and identified a significant pipeline of properties and sites across the UK, we now feel it is important to look outside of the group and work with the right people who can help us grow.
“Since we first began talking to Mark he understood completely our unique approach and focus on the individual needs of our guests to make them feel at home.”
Harris added: “In a convoluted and crowded marketplace dominated by big brands and ubiquitous design, and one in which the customer is becoming increasingly discerning, I believe it is crucial for a brand to be able to stand out and deliver sustainable advantage through a unique offering. Hometels is a nascent yet and hugely undersupplied market, and I firmly believe the wide-ranging appeal and flexibility of room2’s product provides a compelling investment opportunity which also offers defensive characteristics in a more challenging economic environment.”
Room2 is a scion of the Lamington Group, an independent family-owned real estate investment and development company.