Be Mate has increased its capital by 11.5 million euros to finance its expansion across Spain and Europe. Mexican investor Alex García, one of its founding partners, has strengthened his participation through his family office, as well as personally, Javier Rubió, who already participated in the first round, described by Kike Sarasola as “one of the three main angel investors in the Spanish entrepreneurial ecosystem.” After the operation, led by the Barlon Capital III SCR fund and advised by Eversheds Sutherland, Clifford Chance, and RCD, its founder maintains his minority stake as well as the presidency.
Barlon III now holds a majority stake in the company, including the 39% previously owned by Room Mate, which is now divesting from its capital, along with Víctor Fernández as CEO, succeeding the former general manager, Cristian Flórez. The goal is to consolidate growth in cities where Be Mate is already present, reduce debt, and explore opportunities in new emerging markets.
Minority partners, including Sarasola, “several of whom have been there from the beginning, are still there, all very pleased with the fresh injection of money with the capital increase, which also helps us reduce debt significantly,” as detailed by the president, who maintains “a sufficient percentage of capital to be happy because it is very well distributed.”
The operation, according to Be Mate sources, “marks a milestone in the growth and development of the company.” In the last two years alone, they have opened 11 apartment buildings—in Turin, Barcelona, Venice, Rome, Milan, and Medellin—bringing the total to 18, comprising 600 units. As Sarasola acknowledges, “things are going phenomenally well for us.”
The numbers support his statements: if they closed 2022 with an EBITDA (gross operating profit) of 150,000 euros, achieving break-even, this year they plan to increase it to 1.5 million euros, reaching four million for the next.
In their expansion strategy, as explained by the founder and president, “we are also focusing on secondary cities, wherever we find opportunities. The quality of the building and a good location are crucial for us, and wherever we find it, that’s where we’ll be. For example, in Malaga, where we already have an open building, a second one will soon be added. We want to grow in Andalusia, without a doubt, but also in San Sebastian, Bilbao, or London. Perhaps even in a destination in South America. All urban destinations because Be Mate is 100% urban.”
“If the new investors are betting on our model, it’s because it’s good, profitable, and right, as we have never had a single problem with any regulation. I am in favor of regulation, but always in an intelligent way; I don’t think cities should ban just for the sake of banning,” as stated by Kike Sarasola.
Results and Forecasts
The results attest to this. The real estate asset manager for tourist and corporate short- and medium-term rentals recorded a turnover of seven million euros in 2022 with 62,000 nights sold. For this year, they aim to achieve 14 million euros in revenue with 110,000 nights, a 120% increase from 2019. In addition, the average occupancy has exceeded 82%, with a 93.3% online reputation, according to ReviewPro, “placing it among the best-rated options by users.”
The forecasts for the next fiscal year are equally positive, with a turnover of 23 million euros and nearly 200,000 nights reserved in their 1,000 units distributed across 25 buildings.
In Sarasola’s words, “Be Mate has demonstrated its strength and solidity during the pandemic, and now we are consolidating with new projects.” These new projects are also successful in the corporate segment, where they collaborate with large companies that choose their apartments to accommodate their executives for long stays, a “quite powerful” part of their business.
(Article originally posted in Spanish)
