TL;DR: 4Founders Capital's €60M Hospitality Fund targets untapped opportunities in Spain's Tier 2 cities
4Founders Capital is leveraging its tech expertise to transform Spain’s undercapitalized hotel market in secondary cities like Granada and Málaga. By harnessing tech-driven tools for revenue management, staffing, and guest experiences, the €60 million fund seeks to optimize operational efficiency and unlock long-term investment value.
• Tier 2 cities offer lower entry prices, high tourism demand, and minimal competition.
• Tech innovations enhance profitability through digital revenue systems and energy-efficient operations.
• The fund exemplifies the potential in combining strategic investments with advanced technology.
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Spain has long been a magnet for tourism and international investment, but 2026 is making headlines for a particular reason, the launch of 4Founders Capital’s €60 million Hospitality Fund. As someone who’s spent decades working across deeptech, education, and entrepreneurship, I find the timing fascinating. Barcelona-based 4Founders Capital, traditionally known for backing tech startups, is entering the hospitality sector in an undeniably strategic manner. This isn’t about jumping on a trend; it’s about exploiting untapped opportunities in Spain’s Tier 2 cities. Let’s unpack why this move matters, not just for real estate investors, but for society at large. Spoiler alert: it’s about tech synergy, disciplined management, and shifting perceptions of growth markets.
Why is 4Founders Capital pivoting into hospitality?
Here’s what stands out: 4Founders Capital is no stranger to fostering innovation. They’ve carved a niche as early-stage backers of high-growth tech ventures. Until now, their portfolio included companies like Trovit and Atrápalo, both successful examples of marrying tech efficiency with consumer needs. But their Hospitality Fund shifts focus from software to tangible, strategic assets like hotels. Why? Because Spain’s secondary market cities are presenting a goldmine of opportunities. These areas combine high tourism demand with undercapitalized hotel operators, creating an ideal environment for deliberate, tech-enhanced investment strategies.
What makes Tier 2 cities appealing?
Spain is Europe’s tourism powerhouse, but its hotel market isn’t evenly distributed. While Barcelona and Madrid are saturated with luxury developments, Tier 2 cities present higher yield opportunities. Unlike overheated urban cores, secondary destinations offer attractive entry pricing, growing occupancy rates, and minimal competition from institutional investors.
- Prime examples include overlooked gems like Granada, Málaga, and Segovia, all boasting tourism appeal without the inflated real estate prices.
- Spain’s Tier 2 hotel market remains under-digitalized and fragmented, begging for scalable operational efficiencies.
- Structural gaps mean operators have yet to implement modern systems for revenue management and guest experience, areas where tech-enabled optimizations can bring transformative value.
Of course, this isn’t purely about entry points. These cities also promise recurring cash flow from tourism, an invaluable feature in creating sustainable investments.
How does tech elevate hotel investments?
The involvement of GaiaRooms’ founder Enrique Domínguez in 4Founders Capital’s Hospitality Fund offers insight into how tech can redefine asset management. Domínguez’s experience managing over 100 digitally optimized hotels is a perfect example of creating value beyond bookings. Here’s why tech matters:
- Digital revenue management tools: Analyze booking trends in real-time.
- Optimized staffing systems: Balance employee efficiency with guest satisfaction.
- Tech-driven branding: Increase operational profitability while enhancing guest loyalty.
- Energy efficiency systems: Lower operating costs in hospitality assets.
By implementing forward-thinking tools, hotels in secondary cities can unlock operating dividends while setting themselves apart from competitors still reliant on manual processes. The emphasis isn’t just on profit margins, it’s on creating defensible investments with long-term staying power.
What can founders learn from this pivot?
Here’s the takeaway: no entrepreneur should overestimate market saturation in “traditional” investment sectors. While Spain’s hotel market might initially seem saturated, digging one level deeper reveals pockets of untapped growth potential. For startups building ecosystems around real estate, tourism, or regional markets, the Hospitality Fund serves as an example of how tailored investment strategies deliver consistent yields.
- Understand regional demand dynamics, and be prepared to target underserved markets.
- Balance digital transformation with traditional asset value strategies.
- Aim for IRRs that account for both operating gains and capital appreciation over time.
- Be deliberate in partnerships. Collaboration with operational founders (like GaiaRooms) optimizes execution while sharing the risk.
What I find brilliant in 4Founders Capital’s approach is its commitment to nurturing profitability through both tech brilliance and market discipline. This blend isn’t easy to achieve but is essential for long-term sustainability.
Common mistakes hospitality investors must avoid
Even with strong investment flows, hotel investments aren’t bulletproof. Here are frequent missteps to avoid:
- Ignoring operational inefficiencies: Many hoteliers fail to assess where recurring cash flow losses are happening.
- Underestimating the importance of tech: Investing in property without systems that scale operations digitally is short-sighted.
- Over-leveraging: Debt-driven acquisitions erode yield potential and amplify risks under volatile market conditions.
- Skipping regulatory requirements: Any investment needs priority focus on insurer coverage and legal zoning.
- Failure to forecast cash flow accurately: What works on paper might not account for seasonality or maintenance needs.
Investors should view hospitality assets as operational investments, not just static properties, much like founders view startups as dynamic growth machines rather than stagnant entities.
What’s next for hospitality investment in Spain?
Spain’s hospitality landscape is set to explode. Reports indicate €450 million in hospitality tech or asset-backed funding rounds flooded the market in 2025 alone. Significant actors like Room00 Group and Amenitiz are leading the charge in creating operational efficiencies and innovative guest solutions. It’s hard to deny that Spain’s tourism isn’t just booming, it’s ready for reinvention.
Entrepreneurs should keep their eyes peeled for adjacent opportunities. Beyond hotels, what’s stopping a software startup from optimizing front-of-house operations or creating next-generation booking platforms tailored to Tier 2 properties? Venture hybridization between real estate investments and SaaS solutions might just capture the next wave.
Closing thoughts
As an entrepreneur, what struck me most about 4Founders Capital’s Hospitality Fund is its boldness in redefining Spain’s hotel market outside its usual urban hubs. The fund reflects an understanding that innovation isn’t confined to tech startups, it’s about building systems that tackle inefficiencies and create sustainable financial ecosystems. This is a lesson we can all apply, whether we’re planning an investment strategy or designing a product roadmap. Avoid easy assumptions about saturated sectors, and instead, look closer: opportunities often lie in the gaps. Ready to make your own pivot?
Start exploring alternative business strategies inspired by the bold moves in Spain’s hospitality scene. What overlooked opportunity can you tackle next?
FAQ on 4Founders Capital’s €60 Million Hospitality Fund
Why did 4Founders Capital shift focus toward hospitality investments?
4Founders Capital, originally known for investing in high-growth tech startups, shifted focus to hospitality due to significant untapped opportunities in Spain's Tier 2 cities. These cities exhibit strong tourism demand, yet many hotel operators remain undercapitalized and under-digitalized. Through the €60 million Hospitality Fund, 4Founders aims to modernize operations and boost profitability using tech synergy and disciplined asset management. The new fund represents a diversification from conventional tech investments, addressing underserved markets in strategic hotel properties. Learn more about 4Founders Capital’s new direction.
What makes Spain’s Tier 2 cities attractive for hotel investment?
Tier 2 cities like Granada, Málaga, and Segovia offer lucrative opportunities due to lower entry prices, increasing tourism occupancy rates, and minimal institutional competition. Unlike saturated markets such as Madrid or Barcelona, these cities promise higher yields and recurring cash flows from consistent tourist activity. However, they remain fragmented and under-digitalized, making them ripe for modernization efforts like those planned under 4Founders’ Hospitality Fund. Explore the potential of Spain’s Tier 2 markets.
How will technology be applied in the Hospitality Fund’s strategy?
The involvement of Enrique Domínguez, founder of GaiaRooms, underscores the fund’s emphasis on tech-driven value creation. Tech will be integrated into revenue management systems, optimized staffing platforms, energy-efficient solutions, and guest loyalty programs. This approach aims to reduce operational inefficiencies while boosting profitability and sustainability, positioning the hotels as forward-thinking competitors. Learn more about the role of tech in hospitality investments.
What kind of returns is 4Founders Capital targeting with this fund?
The fund targets an IRR of approximately 18% per transaction, with net investor returns expected to exceed 12%. This balance comes from a dual revenue model: recurring dividends from hotel operations and capital gains through the eventual sale of properties. Strategic investments in undervalued Tier 2 city markets enable these high returns by combining operational improvements with asset appreciation.
Who is Enrique Domínguez, and what is his role in this fund?
Enrique Domínguez, the founder of GaiaRooms, has been brought on to contribute his expertise in managing over 100 digitally optimized hotels. His role will center on implementing scalable tech solutions to enhance profitability, operational efficiency, and sustainability for the properties in the fund’s portfolio. His addition to the team represents 4Founders’ commitment to leveraging tech-driven business models in real estate.
What are the risks hospitality investors should avoid with such funds?
Hospitality investments, while lucrative, carry unique risks. Key mistakes include overlooking operational inefficiencies, underestimating the need for digital tools, over-leveraging assets, neglecting regulatory zoning, and failing to correctly forecast cash flows. Effective strategies mitigate these risks by aligning tech integration with disciplined asset and operational management.
How does this move align with recent trends in Spain’s hospitality sector?
In 2025 alone, nearly €450 million flowed into hospitality-related initiatives in Spain, ranging from hotel acquisition strategies by Room00 Group to SaaS funding from Amenitiz. This indicates a robust demand for both physical real estate assets and digital management tools. 4Founders’ new fund aligns with this trend by blending tech-enabled operations with real estate strategies. Check out Amenitiz and Room00 Group’s milestones.
What can entrepreneurs learn from 4Founders Capital’s pivot?
Entrepreneurs can take a lesson from 4Founders’ ability to identify untapped markets in a seemingly saturated sector. Targeting underserved regions, such as Tier 2 cities, balancing digital transformation with traditional asset value strategies, and building strong partnerships all define a tailored, high-impact investment approach.
How does the Hospitality Fund complement 4Founders’ existing tech portfolio?
The Hospitality Fund complements 4Founders’ history of investing in tech-driven companies like Trovit and Atrápalo by extending its expertise into real estate, creating tech synergies in the hotel industry. Its strategy combines the team’s tech background with targeted operational efficiencies to convert traditional businesses into digitally optimized assets.
What does the future hold for hospitality investments in Spain?
Spain continues to see growth in tourism and related investments, with more capital flowing into technology-driven solutions and asset-backed models. Experts predict the hospitality sector will evolve with increased digitalization, making operational efficiency a cornerstone for future success. 4Founders Capital is well-positioned at this intersection, blending technology with disciplined investment strategies to reshape Spain’s hotel market.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.