Real estate private equity firm Proprium Capital has sold its 35% stake in budget hotel chain Motel One for nearly €1.3bn (£1.1bn).
The sale of the stake, to majority shareholder One Hotels & Resorts, values the company at €4.1bn.
Proprium previously bought the stake for €65m in 2007, representing a more than 20-times return on invested equity including dividends, according to the firm.
Since Proprium’s initial investment, Motel One has expanded in Germany and internationally. It operates 94 hotels with 26,470 rooms in 13 countries. Including the pipeline, growth to 117 properties with more than 32,000 rooms in 56 cities has been secured.
Philipp Westermann, partner and head of Europe of Proprium, who led the transaction for Proprium and worked with the board of the company over the years, said: “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.”
Müller 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.”
Morgan Stanley acted as financial adviser; Hengeler Mueller and Freshfields acted as legal advisers to OHR and Proprium respectively.
Images © Proprium
Send feedback to Pui-Guan Man
Follow Estates Gazette
