Real estate private equity firm Proprium Capital Partners is selling its 35% stake in Motel One Group to the majority shareholder One Hotels & Resorts (OHR) for €1.25bn.
Founded in 2000 by Dieter Müller, Munich-based Motel One currently operates 94 hotels with 26,470 rooms in 13 countries.
Principals of Proprium acquired the 35% stake as part of a €65m investment in 2007. Proprium recapitalised the investment in 2019.
The sale of Proprium’s stake to OHR, led by Müller, values Motel One at an enterprise value of €4.1bn.
Philipp Westermann, partner and head of Europe of Proprium, said: “We are proud to have been a long-term partner to Dieter Müller and the Motel One team on its impressive growth journey for more than 15 years. Motel One has delivered outstanding profitable growth since inception by combining a unique design-led hotel concept, a disciplined and cash-generative business model and an entrepreneurial culture.
“While the sale of our stake in Motel One will generate very attractive returns for our investors, we leave Motel One very well positioned with an enormous potential for future growth. The investment in Motel One exemplifies Proprium’s commitment to platform investing, aimed at delivering outsized private equity returns within the real estate industry.”
Müller, who acts as chairman of Motel One’s supervisory board, said: “Together with Proprium, we have built Motel One into an international platform and brand and expect continued strong and profitable growth in the future. We thank the Proprium team led by Philipp Westermann for their trust and contribution.”
Stefan Lenze, Motel One’s co-CEO, said: “On behalf of Motel One, I would like to thank Proprium for the 17 years of partnership. We will continue on our successful path, which we have established together.”
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