Hotel chain Motel One to expand, doubling its properties and introducing a budget-friendly room priced at 100 euros.
In a significant move, German hotel chain Motel One is bolstering its international presence, with a particular focus on medium-sized cities across Europe and the USA. The hotel network's expansion strategy, which combines self-developed projects and acquisitions, is being accelerated with the help of private equity partner PAI Partners.
PAI Partners recently acquired an 80% stake in Motel One, valuing the hotel chain at around 3.5 billion euros. With this investment, Motel One aims to double its number of hotels to 200, as founder Dieter Müller, who retains 20% of the shares, plans to add 30 new locations to the chain.
Müller, who remains chairman of the supervisory board, emphasised the importance of continuity and stability in the company's growth, with PAI's valuable experience and networks providing access to local real estate markets and contacts to existing hotel operators or owners.
The expansion will see Motel One focus on cities where it has already found success, such as Paris, Madrid, and New York, as well as targeting new markets. However, specific details about Motel One's expansion plans or potential acquisitions in Europe and the USA cannot be confirmed at this time, as the available information does not provide precise details on these matters.
Motel One's strategy will also see the company orient itself more towards supply and demand, similar to the airline industry. The budget strategy, with the 100-euro hotel room still available, albeit not always, will continue to be a key part of the brand's offering.
Dieter Müller, at 71, plans to dedicate himself to new projects while knowing Motel One is well-positioned with PAI. The company sees great growth potential in the German home market, with the 100th hotel recently opened at Munich Central Station.
The news of Motel One's expansion plans was discussed in an interview with Müller published by the German newspaper 'Handelsblatt'. As more family-owned businesses seek private equity investors, Motel One's move serves as an example of how such partnerships can support growth and expansion, but with caution.
The technology sector may play a significant role in Motel One's expansion plans, as the company aims to utilize data analytics to optimize hotel operations and guest experiences in new cities.
In addition, Motel One's focus on sports markets could be a strategic move, as hosting events or partnering with local sports teams could boost its visibility in target cities, especially considering New York and Madrid on its expansion list are cities known for their vibrant sports scenes.
