Room Mate expands with Staying Valencia acquisition

The owners of Madrid-based Room Mate Hospitality & Leisure are strengthening the lifestyle brand by acquiring the 10-hotel Staying Valencia brand, management company and leases from unnamed Spanish entrepreneurs for an undisclosed price. The real estate was not part of the transaction.

With this transaction, Room Mate Hotels will operate 32 properties across Spain, Italy, the Netherlands, the U.K., and Turkey. The company is also preparing to launch its Room Mate Collection brand, designed for travelers seeking an elevated and distinctive luxury experience.

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

Guest room at Room Mate's newly acquired Helen Berger hotel in Valencia, Spain

Room Mate Hotels, led by Founder and President Kike Sarasola, plans to integrate and rebrand these properties into its family of lifestyle hotels “in due course.” A representative for the brand wasen’t able to share details on timing.

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.

Since the acquisition of Room Mate Hotels in 2022 by TPG Angelo Gordon and Westmont, Room Mate Hotels has strengthened its financial position and revamped its portfolio through a program of capital expenditures into several hotels. The company stated that 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 EBITDA of €40 million in 2025 for the combined entity,” said Jacopo Burgio, managing director, Europe Real Estate at TPG Angelo Gordon.

A representative from 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.”