PAI Partners acquires majority stake in Motel One

PAI Partners will become the majority owner of Motel One, with a share of c. 80% in the operating business. According to media reports. Following the transaction, Dieter Müller, Founder of Motel One, will remain Chairman of the company. Independently of the partnership with PAI Partners, he will further develop the previously spun-off real estate arm to further support the growth of Motel One.

Since its founding in 2000, Motel One has been a pioneer and market leader in the budget design hotel category. Motel One has been on a strong growth trajectory, attracting more than 10 million guests in 2024. Initially focused on the DACH region, the company today operates 99 hotels across 13 countries, including the U.K., France and the United States, with approximately 28,000 rooms. The company’s growth has been further accelerated by the launch of its new lifestyle brand, The Cloud One Hotels, with properties in New York, Hamburg, Düsseldorf, Prague and Gdańsk.

PAI Partners is a pre-eminent private equity firm investing in market-leading companies across the globe. The Firm has more than EUR27 billion of assets under management and, since 1994, has completed over 100 investments in 12 countries and realised more than EUR26bn in proceeds from over 60 exits. The agreement for Motel One builds on its solid credentials in founder-led partnerships, deep European network and proven expertise in the hospitality industry, including the successful transformations of B&B Hotels, Roompot and European Camping Group. The transaction is subject to customary regulatory approvals and is expected to close in Q2 2025.

The international A&O Shearman team was led by partners Dr. Roman Kasten (Frankfurt) and Dr. Nils Koffka (Hamburg, both corporate/M&A/private equity) and comprised furthermore partners Dr. Rauni Ahammer (Munich), Adam Zecharia (London, both banking and finance), Dr. Heike Weber (tax, Frankfurt), Dr. Jens Matthes (IP/IT, Düsseldorf), Dr. Jochen Scheel (real estate), Peter Wehner (employment), Dr. Tim Müller (compliance, all Frankfurt), Catharina Glugla (data protection, Düsseldorf) and John Kicken (high yield, London), senior associates Dr. Jan Holst, Dr. Marcus Mackensen (both Hamburg), Laura Reuther (all corporate/M&A/private equity), Sebastian Hanke (Munich), Tiffany Liow (London, both banking and finance), Hasan Kaya, Hauke Jung, Simon König (all real estate), Dr. Jasmin Hense (compliance), Dr. Sven Gunkel (employment, all Frankfurt), Sampada Bannurmath (high yield, London), associates Charline Boulenger, Maya Mertling (both Hamburg), Johann Hornberg, Dr. Georg Dalitz (both Frankfurt, all corporate/M&A/private equity), Dr. Laura Frömel, Dr. Georg Lütkenhaus (both Munich), Maaya Sachdev, Talisha Ariarasa (both London, all banking and finance), Pascal Yves Schroeder (data protection, Düsseldorf), Nils Najmann (public law, Frankfurt), Dr. Paul Gerlach (Munich), Franziska Tischler (Frankfurt, both real estate), Damian Snop (tax) and Konstantina Liavas (employment, all Frankfurt) as well as senior project manager Jens Nagel, senior transaction lawyer Julia Khandogina, executive transaction lawyer Oliver Ahnseel and transaction lawyer Milla Kuunila (all Hamburg).

In addition, A&O Shearman teams in Belgium, France, Italy, the Netherlands, Poland, Spain, the Czech Republic and the U.S. were involved, as well as A&O Shearman's partner law firms Eisenberger + Herzog (Austria), Bär & Karrer (Switzerland), Moalem Weitemeyer (Denmark), VDA (Portugal), Arthur Cox LLP (Ireland) and Burness Paull LLP (Scotland).