GLOBAL UPDATE : PROFILE
Style
on a budget
From its German base , Dieter Müller ’ s Motel One is set for European expansion .
Motel One Group CEO Dieter Müller in the One Lounge of Motel One München-City-Ost , located in Munich
By Nathan Greenhalgh , associate editor
Despite the troubled eurozone economy , Motel One Group , Munich , has found a successful formula for European expansion with its lifestyle budget brand Motel One .
The brand ’ s name is slightly misleading — Motel One is not roadside motel . Instead it is a large-sized city center hotel concept , 42 % of which the company owns-operates and 58 % it manages under 20- to 25-year leases .
After the first Motel One opened in Offenbach am Main , Germany , in 2000 , the company has managed to double its portfolio during the economic crisis from 19 in 2007 to 39 today , attracting institutional investors for its properties with their small guestroom sizes and profitable operations model . Indeed , Motel One Group ’ s occupancy was up 3 % year-on-year to 75.9 % in Q2 2012 while revenue increased 32 % year-on-year to € 45 million ( US $ 56 million ), boosting net income to € 7.5 million ( US $ 9.4 million ).
Cheap chic Instead of amenities , the Motel One brand ’ s focus is on location , design and price point to give guests value . “ During my working experience in the hospitality business at Accor , I clearly noticed the growing demand for comfortable accommodation at affordable prices . That was the beginning of the Motel One brand ,” says Dieter Müller , Motel One Group CEO . “ Motel One is popular with both leisure and business guests . In our German hotels business travel adds up to 65 %. We do not offer special corporate rates or discounts but work with a very clear fixed-price policy . Our standard price policy applies to major enterprises , individual business guests as well as leisure guests .”
In fact , Motel One is Müller ’ s second brand , as he also co-founded the Astron Hotels 4-star business brand . After building Astron into the third-largest domestic hotel operator in Germany with 46 hotels ( as well as seven in Austria and Switzerland ), the majority stake in Astron was sold to NH Hoteles , Madrid , in 2002 for € 130 million ( US $ 163 million ), and Müller then turned his focus to Motel One . Motel One features a standard design including turquoise egg chairs , natural stone walls and brown leather armchairs in the One Lounge , which includes a breakfast buffet and free Wi-Fi . Photography of the local destination is also featured — the One
Lounge at the Motel One München- Sendlinger Tor shows a large photo of Neuschwanstein Castle , while the One Lounge at the Motel One München-City-West shows Bavarian Schuhplattler folk dancing .
Motel One guestrooms feature flatscreen televisions , double beds and mobile workstations but no closet , safe or mini-bar .
Expansion plans Müller sees the company ’ s primary competitors as Accor ’ s Ibis and IHG ’ s Holiday Inn Express . Having established itself in Germany , Motel One now has four properties in Austria , Belgium and Scotland , and is looking to expand further in Germany as well as major European cities . “ Our medium-term goal is to increase the network of locations in large German cities and press ahead with expansion into major European cities at the same time ,” Müller says . “ We aim to offer a high-quality product in all big European cities , and we are always in search of suitable sites in city centers . By 2014 , we wish to expand the network of locations to 60 hotels and around 13,500 rooms with already 2,500 rooms outside Germany .”
12 HOTELS October 2012 www . hotelsmag . com