04 July, 2024

Room Mate Hotels Expands its Presence with Acquisition of Staying Valencia

Room Mate Hospitality & Leisure, a leading lifestyle hotel brand and lease management company headquartered in Madrid has announced the acquisition of Staying Valencia, a portfolio of boutique hotels and aparthotels in Valencia. This strategic acquisition marks a significant milestone in Room Mate Hotels’ expansion strategy, bolstered by the support of TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG, and Westmont Hospitality, which together acquired Room Mate Hotels in 2022.

Staying Valencia operates a portfolio of 10 boutique properties in Valencia, including award-winning Helen Berger, and is renowned for its strong reputation, exceptional customer service, and commitment to providing guests with authentic, local experiences. This acquisition not only expands Room Mate Hotels’ presence across Spain, but also strengthens its foothold within Valencia, Spain’s third-largest city and a thriving destination in the European hospitality market. Room Mate Hotels plans to integrate and rebrand these properties into its family of prime-located lifestyle hotels.

Since the acquisition of Room Mate Hotels in 2022 by TPG Angelo Gordon and Westmont, Room Mate Hotels has significantly strengthened its financial position and revamped its portfolio through a program of capital expenditures into several hotels. The company is now well-positioned to continue its international expansion through further strategic acquisitions, new leases, and hotel management agreements.

Jacopo Burgio, Managing Director, Europe Real Estate at TPG Angelo Gordon, said: “We believe Room Mate now operates from a position of financial strength with no debt and a target EBITDA of €40 million in 2025 for the combined entity. We are pleased to have helped Room Mate reestablish itself as one of the premier international hotel chains and look forward to continuing to support the company as it seeks to take advantage of exciting opportunities in the European hospitality sector and beyond.”

Westmont Hospitality added, “Room Mate is on an exciting growth trajectory, underpinned by a strong balance sheet, an institutionalized management team, and a renovated hotel portfolio. This acquisition reflects our continued commitment to support the company’s continued expansion into fast-growing hotel and tourism markets like Valencia through the addition of high-quality assets.”

Kike Sarasola, Founder and President of Room Mate Hotels expressed excitement about the acquisition: “Welcoming Staying Valencia into the Room Mate family marks a significant milestone in our journey. We are thrilled to add Staying Valencia to our portfolio of centrally located lifestyle hotels. Valencia’s cultural richness and the company’s hospitality philosophy perfectly aligns with Room Mate’s values. We look forward to working with the new landlords, employees, and stakeholders. Together, we are committed to setting new benchmarks in hospitality excellence.”

Room Mate Hotels’ acquisition of Staying Valencia follows its recent acquisition of The Lime Tree Hotel in Belgravia, London in late 2023, as well as its recent opening of the Palazzo Dei Fiori by Room Mate in Venice. With this transaction, Room Mate Hotels will operate 32 properties across Spain, Italy, the Netherlands, the UK, and Turkey. The company is also preparing to launch its “Room Mate Collection” brand, designed for travelers seeking an elevated and distinctive luxury experience.

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