Motel One announces new openings - Insights

Motel One announces new openings

Motel One new openingsAffordable design hotel group Motel One, like all businesses in the travel industry, has been impacted by the current economic challenge posed by the COVID-19 virus.

In 2020 sales decreases by 63% resulting in a loss of EUR 102 million. Occupancy figures for the year closed at 28% (previous year: 77%). Although reserves are melting away, Motel One is still well positioned with high liquidity reserves and a strong equity base and is pressing ahead with their ambitious expansion plans. A total of six hotels with 2,300 rooms will be completed in 2021, with a further 21 still in development for upcoming years.

Key highlights for Q4: 

  • New opening: Motel One welcomed Motel One Bonn-Hauptbahnhof to their portfolio in December, their second property in the German city of Bonn. Located next to Bonn’s central railway station, the hotel boasts more than 235 rooms which are available from EUR 69 per night. The design takes inspiration from the United Nation’s 17 Sustainable Development Goals which were ratified in the city and hang as a centre piece in the lobby, with each goal printed on a recycled material. The theme continued with natural and sustainable materials dominating the lobby’s design, including a carpet made from webbing remnants.
  • Six hotel openings for 2021: This year will see the opening of six new hotels with 2,300 rooms. Motel One Manchester-St. Peter’s Square is set to open in the Autumn, the third property for the brand in the city, and it will be ideally located for exploring, based just around the corner from the Manchester Art Gallery. The other openings for the year include Motel One Cologne-Messe, Motel One Nuremberg-Hauptbahnhof, Motel One Hamburg-Fleetinsel, Motel One Stuttgart-Hauptbahnhof and Motel One Aachen. A total of 27 hotels with 7,986 rooms are in development currently. Of these, six are being developed for the Group’s own portfolio and 21 with external investors.
  • Investment in digitalisation: Motel One has continued its targeted investment in digitalisation, with a new redesigned app of iOS and Android which has just launched. The new app digitalises the customer journey further, with functions for room booking, payment, as well as act as a digital companion providing information on the weather and activities in the surrounding area.
  • Motel One Sustainability Programme: Sustainability plays a key role in Motel One’s operations and development plans. All Motel One properties in Germany, Austria, the UK, Switzerland, Poland and Czech Republic obtain 100% of their electricity from renewable sources and other sustainability measures such as urban bio breakfasts in Germany and Austria have also been implemented.

The group continues to anticipate disruption in business in the coming months, which cannot yet be quantified, but Motel One are not allowing the pandemic to distort their view of long-term trends. Trends may see a continued hybrid working world in the post-coronavirus era, with the pandemic consolidating the trend towards, working from home and video conferencing. Whilst the demand for business trips could decrease, the greater flexibility that home offices bring for remote workers could help close this gap.

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