PAI Partners is acquiring an 80% stake in Motel One, aiming to leverage its expertise to support the hotel chain's growth strategy while founder Dieter Müller remains as Chairman.

Target Information

PAI Partners is set to acquire an approximately 80% stake in Motel One, making it the majority owner of the operating business. As part of the agreement, Dieter Müller, the founder of Motel One, will continue to serve as Chairman of the company. He will also focus on advancing the previously spun-off real estate division to further bolster Motel One's growth.

Since its establishment in 2000, Motel One has distinguished itself as a frontrunner and market leader in the budget design hotel sector. The company has seen remarkable growth, welcoming over 10 million guests in 2024 alone. Initially concentrated in the DACH region, Motel One now boasts 99 hotels across 13 countries, including the U.K., France, and the United States, with a total of approximately 28,000 rooms. Their growth strategy has been augmented by the introduction of their lifestyle brand, The Cloud One Hotels, featuring locations in major cities such as New York, Hamburg, Düsseldorf, Prague, and Gdańsk.

Industry Overview

The hospitality industry in Germany and its neighboring regions has been witnessing significant transformation over the past two decades, with budget hotels experiencing a notable increase in demand and popularity. The shift in consumer preferences