The Paris-based private equity firm is taking an 80% stake in the business, it said in a statement Monday. Earlier in the day, Bloomberg News reported that such a deal would value the hotel operator at about €3.5 billion ($3.6 billion).
The purchase shows that European deals are picking up after a sluggish start to the year globally, in spite of lingering uncertainties ranging from the ongoing war in Ukraine to potential US tariffs. Several transactions have been announced in recent weeks, including tech investor Prosus NV’s plan to buy food delivery group Just Eat Takeaway.com NV for €4.1 billion and Italian drilling specialist Saipem combining with Subsea 7 SA in a transaction valuing the Oslo-listed firm at €4.65 billion.
With its latest deal, PAI is adding to its stable of hospitality assets, which include B&B Hotels, Roompot and European Camping Group. The purchase comes as companies in the industry turn bullish on the outlook for travel as a strong dollar portends more visitors to Europe from the US. InterContinental Hotels Group Plc said this month that it sees positive signs for business travel and a bottoming out in China.
Motel One, founded in 2000, operates 99 hotels across 13 countries, including Germany, France, the UK and the US, with about 28,000 rooms. The company also has another brand called The Cloud One Hotels, with properties in New York, Hamburg, Düsseldorf, Prague and Gdańsk.
Motel One’s founder, Dieter Müller, will remain chairman of the company and will further develop a previously spun-off real estate arm, PAI said. Müller fully owned the Munich-based company after buying out a 35% stake from financial investor Proprium last year for €1.25 billion.
PAI manages over €27 billion of assets and focuses on investments in business services, food and consumer, general industries and health care. It raised €7.1 billion for a buyout fund that invests in “real-economy” companies in Europe and North America in 2023.
By Eyk Henning, Swetha Gopinath, and Dinesh Nair
