European hotel chain Motel One is set for its next phase of international expansion, following a strategic partnership with private equity firm PAI Partners. The agreement will see PAI become the majority owner, acquiring around 80% of the operating business, while founder Dieter Müller will remain Chairman of the company.
Müller, who founded Motel One in 2000, will also continue to develop the company’s real estate arm independently to support its future growth. Motel One has built a strong reputation for offering affordable yet stylish accommodation in prime city locations, attracting over 10 million guests in 2024 alone. With a presence in 99 hotels across 13 countries, including the UK, France, and the US, the brand has become a key player in European hospitality.
Expanding a Proven Concept
Initially focused on Germany, Austria, and Switzerland (DACH region), Motel One has expanded rapidly across Europe and beyond. Its new lifestyle brand, The Cloud One Hotels, has added properties in New York, Hamburg, Düsseldorf, Prague, and Gdańsk, further strengthening its international footprint.
PAI Partners, a leading global investor in consumer services, has a strong track record in the hospitality industry, having previously worked with B&B Hotels, Roompot, and European Camping Group. The firm aims to leverage its expertise and extensive European network to build on Motel One’s success and accelerate its expansion.
A Strategic Partnership for the Future
Dieter Müller expressed confidence in the new partnership, stating: “I am delighted to welcome PAI as a strategic partner with deep expertise in hospitality. Together, we will drive the international expansion of Motel One and embark on the next chapter of our exciting growth story.”
Motel One’s Co-CEOs, Daniel Müller and Stefan Lenze, also welcomed the investment: “On behalf of the entire management team, we are excited about PAI’s commitment. Their expertise and support will provide fresh impetus for our international expansion, while building on our successful business model.”
PAI Partners’ Bertrand Monier and Ralph Heuwing echoed this enthusiasm: “We are thrilled to partner with Dieter Müller and the exceptional team at Motel One. Our goal is to build on the company’s current momentum, supporting its next stage of growth while preserving the unique DNA created by its visionary founder.”
With this strategic investment, Motel One is poised to strengthen its presence in key global markets, ensuring that its blend of design, affordability, and premium locations continues to attract travellers across Europe and beyond.
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