Spanish hotel group Room Mate Hotels has completed a strategic acquisition that will give it a significant presence in a new Spanish city market, Valencia.
The purchase of Staying Valencia gives Room Mate an immediate addition of 10 boutique properties in Spain’s third largest city, with a mix of hotels and aparthotels. These include the award winning Helen Berger hotel. The buyer plans to integrate the hotels into its business by rebranding them to Room Mate formats.
A growing portfolio
With these new hotels added, Room Mate now has an operating portfolio of 32 properties across 14 cities in Spain, Italy, the Netherlands, Turkey and the UK.
The addition is the latest step in building the Room Mate businesss, which in 2022 was acquired by investors TPG Angelo Gordon, and Westmont. The strengthening of its financial position allowed Room Mate to invest in several of its hotels, upgrading the portfolio.
“Welcoming Staying Valencia into the Room Mate family marks a significant milestone in our journey,” said Room Mate founder and president Kike Sarasola. “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.”
In late 2023, the group expanded into London, acquiring the Lime Tree Hotel in the UK capital’s Belgravia district. Its 26 rooms provide a combination of traditional London townhouse style with modern touches, and each one is distinct and different, from compact singles to triple occupancy rooms. And in Italy, it recently opened the Palazzo Dei Fiori in Venice, where guests can enjoy a stay in one of 16 individual residences, many showcasing architectural features from the historic building. The accommodation is flexible, and ideal for families or groups travelling together.
Profitable progress
Room Mate is accelerating its business steadily. In 2023, it achieved a 37% growth in ebitda, to EUR15.7m, with a margin ratio nearing 15%. For 2024, the group aims to grow ebitda to EUR24.1m, and for full year 2025, it has targeted achieving ebitda of EUR40m.
Following the acquisition of Staying Valencia, the business is now looking for further acquisitions to grow internationally. Room Mate will consider signing leases and management agreements, to secure suitable new properties. It is also preparing to launch a new brand extension, Room Mate Collection, adding a further luxury option for the group to manage distinctive properties, and offer guests another option in a new market segment. Expansion to the portfolio will see pipeline Collection openings planned for late 2024 into 2025 in London, Paris, Sicily, Rome, Milan, Berlin, Hamburg and Munich. In the hostel segment, Room Mate is also building its brand, Wabi Sabi.
