Spain: Urban hotel chain Room Mate has been acquired by investment firm Angelo Gordon and owner-operator Westmont Hospitality Group.
As part of the deal, Angelo Gordon and Westmont have agreed to maintain Room Mate’s current workforce of over 400 employees and assume nearly €40 million in commitments to lessors, suppliers and clients.
The joint investors initially supported Room Mate in April 2022, providing the business with additional working capital. To restructure the debt, Room Mate filed for insolvency at the end of June 2022 and since then, a Madrid court has approved the sale to Angelo Gordon and Westmont.
Jacopo Burgio, director of Europe real estate at Angelo Gordon, said: “We are pleased to complete this complex transaction, which we believe is reflective of Angelo Gordon’s expertise and ability to execute on challenging yet compelling investment opportunities. Room Mate is a leading hotel brand with a loyal customer base and fantastic team, and we look forward to working closely with company management and Westmont to capitalise on the significant opportunity for growth and expansion.”
Westmont Hospitality Group said: “We are excited to partner with Angelo Gordon to help Room Mate maximise its full potential. The company has a great product and provides guests with a highly differentiated hotel experience. We believe that it is poised for success as the tourism sector continues to recover throughout Europe and beyond.”
Westmont is a privately-held hospitality organisation with a diverse portfolio across two to five-star properties, limited-service and full-service, large conference, apart hotels, boutique hotel, and high-end luxury hotels.
Angelo Gordon is a privately-held alternative investment firm which currently manages approximately $50 billion with a focus on credit and real estate strategies.
Room Mate has a portfolio of 30 hotels and extended stay apartments, according to the company’s website.
