PAI Partners, a private equity firm, has announced that it has entered into a strategic partnership with a consortium led by Dieter Müller, founder of Motel One, to support the next phase of international growth for the design-led budget hotel chain. Following this transaction, PAI will become the majority shareholder of Motel One, holding approximately 80% of the group's operational business.

In April 2024, Dieter Müller regained control of Motel One after acquiring the shares held by Proprium Capital Partners. Today, this new transaction with PAI, which becomes the majority shareholder, allows Motel One to strengthen its position in the international market and accelerate its development while preserving the brand's DNA.

Dieter Müller, who will remain the chairman of Motel One after the transaction, will also continue to develop the company's real estate branch, a distinct sector that had been previously separated, to support the brand’s future growth.

Motel One: A Key Player in Design Budget Hospitality in Europe

Since its founding in 2000, Motel One has established itself as a major player in the design budget hotel sector. The chain stands out with its model offering affordable prices, prime city-center locations, high customer satisfaction, and quality design. This combination has allowed Motel One to remain one of the top-performing concepts in European hospitality in recent years.

With strong growth, Motel One welcomed over 10 million guests in 2024. Initially focused on the DACH region, the company now operates 99 hotels in 13 countries, including the UK, France, and the United States, representing around 28,000 rooms. The launch of the lifestyle brand The Cloud One Hotels, with properties in New York, Hamburg, Düsseldorf, Prague, and Gdańsk, has also contributed to this momentum.

PAI Partners: A Recognized Leader in Business Transformation

PAI Partners is a major player in consumer services, known for its expertise in transforming businesses into global leaders. The partnership with Motel One builds on PAI’s experience in collaborating with founders, its network in Europe, and its expertise in the hospitality industry, as demonstrated by successful transformations of companies like 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

Transaction Expected in the Second Quarter of 2025

The transaction, which is subject to usual regulatory approvals, is expected to be finalized in the second quarter of 2025. This strategic partnership marks a new era for Motel One, with the goal of accelerating its international development and reinforcing its position as a leader in design budget hospitality.