German budget hotel chain Motel One will open its first U.S. property in New York City, following an agreement with Union Investment to take over the operation of a former Courtyard by Marriott hotel.

According to a Union Investment press release, Motel One signed a 20-year lease on the property and resumed operations on July 21st.

The group is set to conduct a "refurbishment and rebranding" of the property.

The property is located near the World Trade Center complex, and had operated as a Courtyard hotel since 2016. 

Motel One already operates hotels in eight Union Investment-owned properties, and Martin Schaller, head of Asset Management Hospitality, said:

As Motel One’s biggest landlord, we are delighted to have the opportunity to extend our longstanding strategic relationship outside Europe as well.

We’re looking forward to jointly bringing this successful lifestyle concept to the local market and travellers from all over the world in the heart of New York very soon.

Motel One was launched in 2000 with low-cost properties located near German highways, but has steadily expanded its portfolio to about 75 hotels across Europe, including city-center locations in British cities such as Edinburgh, Glasgow, London, Manchester and Newcastle.