Room Mate expands with the acquisition of Staying Valencia

The owners of Madrid-based Room Mate Hospitality & Leisure are bolstering their lifestyle brand by acquiring the Staying Valencia brand, which includes 10 hotels, the management company and leases from undisclosed Spanish entrepreneurs for an undisclosed price. The real estate assets were not part of the deal.

With this transaction, Room Mate Hotels will operate 32 properties in Spain, Italy, the Netherlands, the United Kingdom and Turkey. The company is also preparing to launch its Room Mate Collection brand, designed for travelers seeking a refined and distinctive luxury experience.

TPG Angelo Gordon, a diversified real estate investment and credit platform within TPG, and Westmont Hospitality have acquired the Valencia, Spain-based company, which owns a portfolio of boutique hotels and aparthotels in Valencia, including the award-winning Helen Berger. The deal not only expands Room Mate Hotels’ footprint across Spain, but also strengthens its presence in Valencia, Spain’s third-largest city.

Room Mate Hotels, led by founder and chairman Kike Sarasola, plans to integrate and rebrand these properties into its lifestyle hotel family “in due course.” A representative for the brand was unable to share specifics on the timeline.

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 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 reorganized its portfolio through a program of investment in 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 Room Mate now operates from a position of financial strength, with no debt and a target of €40 million EBITDA in 2025 for the combined entity,” said Jacopo Burgio, managing director of European real estate at TPG Angelo Gordon.

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