In a move that has captured the global hospitality industry’s attention, Proprium Capital Partners, a prominent London-based private equity firm, has sold its 35% stake in Motel One, a budget design hotel chain rooted in Munich, for an impressive sum of 1.25 billion Euros. This transaction marks the transfer of majority ownership to One Hotels & Resorts GmbH, the founder and now sole owner of the chain.
Concluded on April 2nd, the deal not only highlighted Motel One’s valuation at 4.17 billion Euros but also showcased the significant return on investment for Proprium, which had acquired its stake for 65 million Euros in 2007. Over these 17 years of partnership, Motel One has experienced exponential growth, currently expanding to 94 hotels and over 26,470 keys, with a growth outlook that includes 23 new hotels and approximately 5,500 additional keys.
Motel One has announced plans to open another 13 hotels by 2026, extending its presence to 56 European cities. This announcement comes at a time of significant expansion for the group, which launched its second brand, Cloud One Hotels, in 2022, introducing new properties in New York, Hamburg, and Nuremberg. Furthermore, the forthcoming debut in Italy at Verona and plans for a new hotel in Bolzano underline Motel One’s ambition to further consolidate and expand its footprint in the European hospitality sector.
The Financial Times article highlights the bustling activity in the hospitality sector, with particular focus on Proprium Capital Partners’ investment return, which exceeded 20 times the initial capital. This dynamic backdrop, which includes the potential sale of the CitizenM group, valued at around 4 billion Euros, underscores the rapidly evolving nature of the hospitality industry.
Motel One, founded in 2000 by former Accor executive Dieter Müller, has continued to demonstrate strong financial performance, closing the 2023 fiscal year with a 33% increase in revenue over the previous year and a 64% increase in EBITDA. With a strategy that emphasizes both the conversion of existing buildings and the development of new constructions, Motel One positions itself as an innovative leader in the budget design hotel segment, aiming for a presence in 117 locations.
The success story of Motel One, highlighted by the recent transaction and ambitious growth prospects, not only bears witness to the vitality of the hospitality sector but also reflects the market potential for investments in the hotel real estate sector. With a clear vision and an effective business model, Motel One is well-positioned to continue its upward trajectory in the global hospitality landscape.
