Barcelona-based 4Founders Capital has announced its expansion into real estate with the launch of a new $70.2 million fund, 4Founders Capital Hospitality. This new vehicle, approved by Spain's CNMV, will target the acquisition of approximately 15 hotels in strategic secondary cities across the country. The initiative marks a significant step for the firm, which has managed over $152.2 million in venture capital, by applying its tech-focused expertise to the hospitality sector.
Tapping into Underserved Markets
The fund's strategy is rooted in a structural opportunity within Spain's hotel market, where major destinations like Madrid and Barcelona face saturation and high prices. In contrast, many Tier 2 cities exhibit strong tourism fundamentals but have attracted limited institutional investment, presenting a clear opening for value creation. 4Founders aims to capitalize on this gap by acquiring assets in prime locations within these underserved yet high-potential markets.
A Technology-Driven Investment Strategy
The investment model is designed to deliver a dual stream of returns by combining income from hotel operations with long-term real estate appreciation. This will be achieved through active asset management, modernization, and the strategic divestment of properties over a three-to-four-year horizon. The fund targets an ambitious net internal rate of return (IRR) exceeding 12% for its investors, with a projected IRR per transaction approaching 18%.
A key element of the fund's strategy is its emphasis on digital transformation to enhance operational efficiency and guest experience. To spearhead this initiative, 4Founders has appointed Enrique Domínguez, founder of the hotel operator Gaiarooms, to lead the investment strategy. Domínguez brings extensive experience in digitalizing hotel management, having overseen a portfolio of over 100 hotels and 1,500 rooms.
Context and Competitive Landscape
This launch occurs amidst a dynamic investment landscape for European hospitality, with significant capital flowing into both real estate assets and enabling technologies. Recent data indicates approximately $530.4 million in disclosed funding across the sector, with Spanish companies like Amenitiz and Room00 Group securing substantial investments. This context highlights Spain's role as a key hub for hospitality innovation and investor appetite for tech-driven real estate models.
4Founders Capital's approach distinguishes it from established competitors such as Azora and Eurazeo, which typically focus on large-scale or luxury assets. By targeting the mid-market segment in less saturated cities, the fund offers a unique value proposition centered on a balance of stability and growth. This focus on technology and disciplined management in an often-overlooked market segment sets the new vehicle apart from traditional real estate investment strategies.
With the launch of its hospitality fund, 4Founders Capital is strategically diversifying its investment portfolio and bringing its venture capital DNA to the real estate sector. The firm plans to use this initial $70.2 million vehicle as a cornerstone for building a larger, more expansive hospitality investment platform across Spain and Southern Europe. This move signals a strong belief in the power of technology to unlock value and shape the future of hotel investment.