LOS ANGELES—Room Mate Hotels president Enrique “Kike” Sarasola is continuing his expansion quest and has his sights set squarely on the United States.
With three properties open in the U.S., the Spain-based company is in full growth mode as it recently hired Felip Boyero as its managing director of the Americas based in Miami. Now the plan is to actively pursue new hotels throughout the country to join the chain, Sarasola said during a break at January’s Americas Lodging Investment Summit.
“We have a good product that guests like and it makes sense to make a push to the U.S. now,” said Sarasola, who was one of the company’s founders in 2005. “We provide an alternative way to operate a hotel that appeals to a broad base of consumers.”
Room Mate Hotels operates 27 design-focused hotels in the centers of 12 major cities around the world, with the majority of them located in Europe. Each property takes on the persona of a fictitious roommate selected by guests: Room Mate Grace in New York, Room Mate Waldorf and Room Mate Lord Balfour in Miami. Ten more properties are scheduled to open in the next 15 months, Sarasola said.
Room Mate will first target central locations in key gateway cities before moving on to secondary markets, Sarasola said. San Francisco, Boston, Chicago, Los Angeles, Orlando, Dallas and Houston are high on the chain’s list for expansion.
“It always has to be central locations to get the perfect mix of leisure and business travelers,” Sarasola said.
While Room Mate will consider adding hotels with as few as 80 rooms “if it’s something special,” Sarasola said the ideal property has a minimum of 200 rooms.
Sarasola declined to put a number of the desired number of Room Mate hotels in the U.S.
“There is no ultimate goal because there is never enough,” he said.
The common hotel business models of leases and management contracts are outdated, according to Sarasola. Room Mate’s model consists of renting or leasing hotels from owners who receive a fixed or variable percentage of the gross revenues, depending on the up-front agreement. Room Mate is the management company that operates the hotel.
Sarasola said the brand’s name is its calling card because of what it represents, and 50% of its clientele is over 40 years old.
“Room Mate is not a sharing concept; the name is because it’s a friendly chain,” Sarasola said. “It’s an affordable luxury brand for anyone who doesn’t want to throw their money away.”
The brand embraces “happytality”—which is a word Sarasola registered and uses to describe Room Mate’s vibe.
The brand’s mantra is to provide guests with want they want, including breakfast until noon and a free Wi-Fi device that provides service to up to six devices as guests roam around a city.
“I don’t believe in a discount program, I believe in making them happy with things they want and need,” Sarasola said.
Room Mate hotels tend to have leased bars and restaurants, according to the president.
“We don’t like to operate most of our F&B spaces,” Sarasola said. “We like to operate the bar and rooftop terraces, if we have them.”
Meanwhile, Sarasola plans to bring Be Mate—an apartment rental service that combines the amenities of a hotel with the privacy and convenience of an apartment—to the U.S. at some point in the future. The uncertainty over laws and zoning issues for sharing economy ventures means the timing isn’t right, he said.
“It will happen at some point because I believe this new business economy is here to stay,” Sarasola said.