PAI Partners enters partnership with Motel One to accelerate international growth

PAI Partners, a pre-eminent private equity firm, has agreed to enter into a proprietary partnership with a consortium led by Dieter Müller for Motel One Group, a leading economy design hotel chain in Europe, to support its next phase of international growth. PAI will become the majority owner of Motel One, with a share of c. 80% in the operating business. Following the transaction, Dieter Müller, Founder of Motel One, will remain Chairman of the company. Independently of the partnership with PAI, Dieter Müller will further develop the previously spun-off real estate arm to further support the growth of Motel One.

Since its founding in 2000, Motel One has been a pioneer and market leader in the budget design hotel category. Motel One’s unique combination of affordable pricing, prime inner-city locations, leading guest satisfaction and high-end design has allowed it to become one of the best performing concepts in European hospitality over the past decade.

Motel One has been on a strong growth trajectory, attracting more than 10 million guests in 2024. Initially focused on the DACH region, the company today operates 99 hotels across 13 countries, including the UK, France and the United States, with approximately 28,000 rooms. The company’s growth has been further accelerated by the launch of its new lifestyle brand, The Cloud One Hotels, with properties in New York, Hamburg, Düsseldorf, Prague and Gdańsk.

PAI is a recognised global leader in Consumer Services, following decades of investing in the Real Economy, transforming businesses into European and global leaders. The agreement for Motel One builds on its solid credentials in founder-led partnerships, deep European network and proven expertise in the hospitality industry, including the successful transformations of B&B Hotels, Roompot and European Camping Group.

I am delighted to welcome PAI as a strategic partner with extensive expertise in the hospitality industry. Together, we will further accelerate the international expansion of Motel One. We look forward to partnering with PAI as we embark on the next chapter in our exciting growth story. Dieter Müller, Founder & Chairman of Motel One

On behalf of the entire management team, we welcome PAI’s commitment to Motel One. We look forward to the new impetus they will bring to our international expansion, building on the company’s successful business model. Daniel Müller and Stefan Lenze, Co-CEOs of Motel One

We are thrilled to partner with Dieter Müller and the excellent Motel One management team. We look forward to building on the company’s current momentum, supporting its next stage of international growth while preserving the unique DNA created by its visionary founder. Bertrand Monier and Ralph Heuwing, Partners at PAI

The transaction is subject to customary regulatory approvals and is expected to close in Q2 2025.