Spanish company Room Mate acquires Staying Valencia

Room Mate Hospitality & Leisure, the lifestyle hotel brand and property management company, has acquired Staying Valencia’s collection of 10 boutique hotels and aparthotels in Valencia, Spain.

The purchase price and other terms of the deal were not disclosed.

The acquisition strengthens Room Mate’s presence in Spain and Valencia. The company will integrate Staying Valencia’s 10 properties, including the Helen Berger Hotel & Bar, and rebrand them into its own family of lifestyle hotels.

The addition of the Staying Valencia hotels brings Room Mate’s total portfolio to 32 hotels located in Spain, Italy, the Netherlands, the United Kingdom and Turkey.

“Welcoming Staying Valencia to the Room Mate family marks an important milestone in our journey. We are thrilled to add Staying Valencia to our portfolio of lifestyle hotels located in the city center,” said Kike Sarasola, Founder and President of Room Mate Hotels. “Valencia’s rich culture and the company’s philosophy of hospitality are a perfect fit with Room Mate’s values.”

Clifford Chance, Perez Llorca, JLL, PwC and Arcadis acted as advisors to Room Mate Hotels, while JJL, led by Javier de Miguel, acted as financial and legal advisor to Staying Valencia.

The transaction follows Room Mate’s acquisition of The Lime Tree hotel in Belgravia, London in November 2023, as well as the recent opening of Palazzo Dei Fiori by Room Mate in Venice. The company is also set to launch the ‘Room Mate Collection’ brand, which aims to deliver a high-end luxury experience.

The acquisition marks a significant milestone in Room Mate’s expansion strategy, backed by TPG Angelo Gordon, a real estate investment and lending platform within TPG, and Westmont Hospitality. The two companies acquired Room Mate in July 2022, following the financial restructuring of the Madrid-based hotel brand.

Founded in 2005, Room Mate filed for bankruptcy in June 2022. Angelo Gordon and Westmont had already invested in the Spanish company in April 2022 to provide working capital and later announced that they had acquired the company.

Since the acquisition, Room Mate has improved its financial position and transformed its portfolio through a series of investments in several hotels. In a statement, the company said it was “well positioned” to continue its international expansion through further acquisitions, new leases and hotel management agreements.

Room Mate now operates in a position of financial strength, with no debt and a target EBITDA of €40 million ($43.33 million) in 2025 for the combined entity, said Jacopo Burgio, managing director of European real estate at TPG Angelo Gordon. “We are pleased to have helped Room Mate re-establish itself as a leading international hotel chain and look forward to continuing to support the company as it pursues attractive opportunities in the European hospitality sector and beyond.”