Madrid-based Room Mate Hotels, a division of Room Mate Hospitality Holdings, has bolstered its portfolio with the acquisition of Staying Valencia and its 10 properties in Spanish city Valencia.
Room Mate previously had no hotels in Spain’s third-largest city.
No financial details were announced, but the development marks Room Mate’s first portfolio deal.
Room Mate went to bankruptcy proceedings during the COVID-19 pandemic but was rescued by investment from a joint venture created in July 2022 by private equity firms TPG Angelo Gordon and Westmont Hospitality, based in New York City and Toronto, respectively.
The Staying Valencia deal brings Room Mate's portfolio up to 32 hotels.
The added portfolio is a combination of boutique hotels and aparthotels, according to a Room Mate news release.
The new acquisitions will be folded into Room Mate’s three existing brands — hotel brand Room Mate, aparthotel brand Be Mate and hostel brand Wabi Sabi.
The company is working on launching a soft brand, Room Mate Collection.
The Staying Valencia deal follows a wave of expansion for Room Mate, which included the brands debut in the United Kingdom last November with the 26-room Lime Tree Hotel in the Belgravia district of London that dates as a hotel to 1873.
Its latest opening was in December, the 33-room Room Mate Palazzo dei Fiori in Venice and in cooperation with the property’s owner, Italian insurance firm Generali Group.
In its full-year 2023 earnings announcement, the firm posted a growth in sales of 37% and total revenue of €106.5 million ($115.2 million).
In the release, Jacopo Burgio, managing director, Europe real estate, TPG Angelo Gordon, underlined the firm’s financial situation.
“We believe Room Mate now operates from a position of financial strength with no debt and a target earnings before interest, taxes, depreciation and amortization of €40 million in 2025 for the combined entity,” he said.