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Motel One plans rapid entry into UK with launch of six hotels

25 September 2012 by
Motel One plans rapid entry into UK with launch of six hotels

German budget hotel brand Motel One is set to make a rapid expansion into the UK market with the opening of six hotels.

Focused on offering great design for little money, Motel One will open its first hotel in the UK in Edinburgh in December. A second property in Edinburgh is also in the pipeline, alongside two in London, one in Manchester and one in Newcastle.

The group is targeting the UK as its second-most important market out of Germany and is seeking opportunities to acquire freehold or long leases on properties in major cities.

Every hotel features such design classics as the turquoise egg chair by Arne Jacobsen and the Arco lamp by Achille Castiglinoi, as well as free Wi-Fi in the One Lounges and iPads for guests.

Founded in Munich in 2000 by chief executive Dieter Muller, Motel One operates 39 hotels in Germany and Austria and intends to grow to 60 properties with 14,000 rooms by 2014. The acquisition of a 35% stake in the company in 2007 by Morgan Stanley kickstarted the group's international expansion.

Muller said: "We see as much, if not more, potential in London for our brand as in Berlin, where we have eight hotels with over 2,000 rooms. Our product is young and stylish and focuses on three qualities, namely excellent location, affordable prices and high-quality design and service. We are convinced Motel One will be popular with guests in the UK."

The inaugural Motel One for the UK will be a 208-bedroom property within a converted 18th-century building in Edinburgh's Market Street, with a starting rate of £69.

Latest financial results for the group showed a 48% increase in turnover in 2011 to £107m and pre-tax profit up 25% at more than £18m, with an average occupancy of 70% across all the hotels.

German budget brand Motel One set to launch in London >>

Motel One to open second Edinburgh hotel >>

German hotel group Motel One to make UK debut in Edinburgh >>

By Janet Harmer

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