Room Mate expands with acquisition of Staying Valencia

The owners of Madrid-based Room Mate Hospitality & Leisure are bolstering their lifestyle brand by acquiring the 10-hotel Staying Valencia brand, management company and leases from unnamed Spanish business owners for an undisclosed price. The property was not part of the deal.

The transaction will see Room Mate Hotels operate 32 properties in Spain, Italy, the Netherlands, the UK and Turkey. The company is also preparing to launch the Room Mate Collection brand, designed for travelers seeking an elevated and unique luxury experience.

TPG Angelo Gordon, the diversified real estate lending and investment platform within TPG, and Westmont Hospitality have acquired a Valencia, Spain-based company with a portfolio of boutique hotels and apartments in Valencia, including the award-winning Helen Berger. The transaction not only expands Room Mate Hotels’ presence throughout Spain, but also strengthens its position in Valencia, Spain’s third-largest city.

Room Mate Hotels, led by founder and CEO Kike Sarasola, plans to integrate and rebrand the properties into its family of lifestyle hotels “in due course.” A brand representative could not provide specifics on when.

The acquisition of Staying Valencia by Room Mate Hotels follows the recent acquisition of The Lime Tree Hotel in Belgravia, London in late 2023, as well as the recent opening of Palazzo Dei Fiori by Room Mate in Venice.

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

“We believe that Room Mate currently operates from a strong financial position, debt-free and with a target EBITDA of €40 million in 2025 for the combined entity,” said Jacopo Burgio, Managing Director, Real Estate Europe, TPG Angelo Gordon.

Westmont Hospitality added, “Room Mate is on an exciting growth trajectory, supported by a strong balance sheet, an institutionalized management team and a renewed portfolio of hotels. This acquisition reflects our continued commitment to supporting the company’s continued expansion into high-growth hospitality and tourism markets, such as Valencia, by adding high-quality assets.”