Motel One to Pass $1.1 Billion in Revenue After PE Firm Backing

Motel One, a design-heavy budget hotel chain in Europe, is on pace to surpass €1 billion (about $1.17 billion) in revenue this year, marking a new phase of international expansion after private equity firm PAI Partners agreed to acquire an 80% stake in the operating business earlier this year.

“Importantly, our strategy remains fully intact, and our team and the way we operate the business remain unchanged,” Co-CEO Stefan Lenze told Skift.

PAI has more than €27 billion of assets under management. It owned rival brand B&B Hotels between 2016 and 2019, turning that brand into the largest hotel chain footprint in Germany (beating brands from Accor, IHG, Whitbread, Marriott, and others), according to Horwath HTL.

PAI sold B&B Hotels to Goldman Sachs after making it the fastest-growing hotel chain in Europe at the time and doubling its EBITDA.

There's an opportunity for PAI to repeat the acceleration technique with Motel One, whic