German hotel group Motel One has prepared itself for further, faster expansion after enjoying a record year of performance in 2023.
The company has now split its operational and property businesses, and bought out 35% stakeholder Proprium Capital Partners, as the owners prepare for a stock market listing. The move will not only allow stakeholders up to this point the option of taking profits, but will also give Motel One the opportunity of tapping public markets to fund further international growth.
Record results
Motel One reported strong results for 2023, making it the most successful year in the company’s history. Revenues were up 33% to EUR852m, and ebitda improved 64% to EUR281m as stronger room rates combined with higher occupancy to drive up profits. Occupancy for the year averaged 72%, compared with 64% in 2022. The company opened six new hotels, taking its portfolio to 94 hotels by the year end.
Motel One’s founder, Dieter Muller, has recently revealed he purchased a 35% stake in the business from backer Proprium, who had supported the business since 2007. As a result, his investment vehicle has a substantial majority of Motel One shares, easing the way to an IPO.
From its German base, Motel One has grown internationally, More recently the group decided on a US location to test out the viability of its second brand, The Cloud One. Following a successful launch in New York, the brand has now opened in Hamburg, Nuremberg and Prague, with a further Cloud One site nearing completion in Dusseldorf. Sites in Chicago and Miami have also been secured, while in Europe there are plans to open in Lisbon, the group’s first hotel in Portugal.
Having built a solid base of hotels across its home markets of Germany, Austria and Switzerland the company today has close to one third of its properties outside that region. During 2023, the group signed new Motel One sites in Berlin, Dusseldorf, Milan, Miami and two in London.
European pipeline
Upcoming openings for later in 2024 include two hotels in London, one in the financial district and the other near Hyde Park, taking the brand’s presence in the UK capital to three sites. There will also be a hotel opening in Gdansk, Poland, plus the second property in Belgium, in the city of Antwerp.
Also in the current pipeline are two hotels in Vienna, one of which will open in 2025 with a rooftop bar offering great views over the city. Other openings scheduled for 2025 include a new 222 room hotel in Southwark, London, an additional 269 room hotel in Munich, and a new build property in Koblenz.
