4Founders Capital expands into hotels with a €60M fund
4Founders Capital, a Barcelona-based venture capital firm known for backing early-stage technology companies, is moving deeper into real assets with the launch of its first hospitality-focused investment vehicle, 4Founders Capital Hospitality FCRE SA. The fund has been registered with Spain’s securities regulator, the CNMV, under number 239 and is structured around a six-year investment horizon with a capacity of €60 million.
The new vehicle is designed to build a portfolio of roughly 15 hotels, concentrating on prime locations in Spain’s so-called Tier 2 cities—destinations that often benefit from strong tourism demand but attract less institutional capital than Madrid or Barcelona. The strategy aims to pair near-term cash flows from hotel operations with longer-term value creation through active asset management and modernization.
Why Tier 2 cities are at the center of the strategy
Spain’s hotel market has remained attractive to investors, but the dynamics differ sharply between major hubs and smaller cities. In large, globally recognized destinations such as Madrid and Barcelona, acquisition competition is intense and pricing is elevated, making it harder for new entrants to generate outsized returns without taking on additional risk.
By contrast, secondary cities can offer a different mix: steady occupancy supported by domestic and international tourism, fewer large institutional buyers, and more room to improve performance through operational upgrades. 4Founders Capital is positioning its fund to capitalize on these conditions by targeting mid-market assets where renovation, repositioning, and improved management can translate into higher operating income and asset appreciation.
Return targets and portfolio construction
According to the firm, the fund is targeting a net internal rate of return (IRR) above 12%, which would place it competitively against many traditional real estate vehicles. The plan is to generate immediate dividends through operating yields while also pursuing capital gains through hands-on improvements to the underlying properties.
Rather than pursuing trophy assets or luxury-heavy portfolios, the fund’s mandate centers on the mid-market segment—an area that can be more resilient in downturns and more responsive to operational improvements. The approach depends on disciplined underwriting, selective acquisition, and the ability to execute upgrades that raise both guest satisfaction and profitability.
Technology and “digital hotel transformation” as a differentiator
4Founders Capital is framing the new fund around the idea that digital transformation will increasingly define hospitality performance. The firm argues that operational efficiency and modern guest experiences—enabled by technology—are becoming essential to compete, particularly for properties that have not benefited from recent investment cycles.
In practice, “digital hotel transformation” can include a range of initiatives: improved revenue management systems, modern booking and distribution strategies, dynamic pricing, contactless check-in, energy management tools, and data-driven staffing and procurement. The firm’s thesis is that these upgrades, paired with disciplined asset management, can unlock value in hotels that are well located but operationally under-optimized.
How it compares with established hotel investors
Spain and Europe already host major hospitality investors, including Azora, Atom Hoteles, and Eurazeo’s Grape Hospitality. Many of these platforms focus on larger-scale portfolios, higher-end assets, or strategies that rely heavily on scale and brand partnerships.
4Founders Capital is taking a different route by emphasizing smaller-city market selection and a mid-market positioning, aiming to combine stability with a clear operational upside. The firm’s bet is that less saturated markets, paired with modernization and technology-driven management, can deliver attractive risk-adjusted returns.
Firm background and investor base
Founded in 2017 in Barcelona by Jesús Monleón, Marc Badosa, Javier Pérez-Tenessa, and Marek Fodor, and later joined by Paula Blázquez, 4Founders Capital has established itself as a recognizable name in Spain’s early-stage investment ecosystem.
The firm reports that it manages more than €130 million across four funds and is backed by a mix of institutional investors and family offices. Its listed supporters include the EIF, CDTI, ICO, and ICF, reflecting a blend of European and Spanish public finance institutions alongside private capital.
What comes next for the hospitality platform
Over the next several years, 4Founders Capital plans to assemble a portfolio of hotels that can deliver consistent operating yields while benefiting from value-add interventions such as refurbishment, repositioning, and technology upgrades. The firm has indicated that the new fund is intended not only as a standalone vehicle, but also as a foundation for a broader hospitality investment platform.
Looking ahead, the platform could extend beyond Spain into Southern Europe, where similar market dynamics—tourism-driven demand, fragmented ownership, and uneven levels of institutional investment—may create opportunities for investors able to combine capital with operational expertise.
For now, the launch underscores a wider trend: as competition intensifies in core real estate markets, more investment managers are searching for return profiles that can be enhanced through active management and sector-specific operational playbooks, rather than relying solely on market appreciation.
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