PAI Partners acquires majority stake in Motel One

The private equity firm acquires around 80% of the Motel One Group and intends to further drive international growth. Founder Dieter Müller remains Chairman.

Munich, March 3, 2025 - If you're in the startup world, it's hard to avoid Motel One hotels. Whether as a place to stay at conferences, as a meeting point for meetings in the lobby or as direct competition to other central budget hotels - the chain is an integral part of the ecosystem. A new chapter is now beginning for Motel One: the private equity firm PAI Partners is acquiring around 80% of the shares in the hotel group and intends to drive its international expansion forward.

Motel One: From pioneer to market leader

Since its foundation in 2000, Motel One has established itself as the market leader in the budget design segment. The combination of stylish design, central location and affordable prices has made the company one of the best-performing hotel brands in Europe. In 2024 alone, more than 10 million guests stayed in one of the 99 hotels in 13 countries - including locations in Germany, the UK, France and the USA.

I am delighted to have PAI on board as a strategic partner who shares our vision. Together we will continue to drive Motel One's international expansion.

Dieter Müller, Founder and Chairmen Motel One

In addition to the established Motel One brand, the new lifestyle line The Cloud One Hotels, which is already represented in New York, Hamburg, Düsseldorf, Prague and Gdańsk, is also growing.

PAI Partners as a growth driver

Motel One intends to further accelerate its international growth with the investment of PAI Partners. The private equity firm has already proven itself as an expert in the hospitality sector with investments in B&B Hotels, Roompot and the European Camping Group.

Motel One is an impressive success story. We look forward to further accelerating its growth and expanding Motel One's unique concept worldwide.

Bertrand Monier and Ralph Heuwing, Partners PAI

Founder Dieter Müller will remain Chairman of Motel One, while the current Co-CEOs Daniel Müller and Stefan Lenze will continue to take care of the operational business.

What does this mean for the industry?

The deal shows that investments in the hotel industry remain attractive despite the challenges of recent years. Motel One is in direct competition with other budget hotels, which often fight for the same guests, especially at large conferences. With PAI's capital and network, Motel One could conquer new markets in the future and further consolidate its position as a leading budget design hotel brand.

The transaction is expected to be completed in the second quarter of 2025 - after that, it will be exciting to see how Motel One develops and which new locations are next on the list.