The hotel group created by Kike Sarasola in 2005 has been hit really hard by the pandemic. On a strong growth phase in 2020, it didn’t have enough cash flow to face the lack of activity.
The investment firm Angelo, Gordon & Co., L.P. partners with the Canadian Westmont Hospitality Group to take over Room Mate’s properties, activities, and debts.
Angelo Gordon and Westmont initially invested in Room Mate in April 2022 and acquired the company following June 24th court decision to recognize the company insolvent. They offered €57 M to preserve the 400 jobs provided by the company and honour commitment to suppliers and partners.
The Spanish judge declared she chose to give a chance to save the company but doesn’t really believe in a long-term activity for the group which debts are important. Not to mention the rise of the key rate announced by the central bank which will increase the weight of that debt.
However, the products are well designed and situated in good locations, as tourism started to hit record from the beginning of the year, the saving might work.
