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Motel One to launch UK offering

25 | 09 | 12

German budget hospitality brand Motel One has announced plans for expansion into the UK market and is set to open six new hotels in the country over the coming months, beginning in the Scottish capital of Edinburgh.

Focused on offering great design for little money, the firm is also planning to open sites in Manchester and Newcastle, as well as two in London and a second offering in Edinburgh.

Chief executive Dieter Muller told Caterer and Hotelkeeper he believes that the company's businesses model can be a success in the UK, building on its strong performance in Germany over recent years.

"We see as much, if not more, potential in London for our brand as in Berlin, where we have eight hotels with over 2,000 rooms," he added.

"Our product is young and stylish and focuses on three qualities, namely excellent location, affordable prices and high-quality design and service."

The businesses' inaugural Edinburgh property will be a 208-bedroom site based in an 18th century building on Market St.

According to the latest financial results for the group, its turnover grew by 48 per cent over the course of 2011 to reach £107 million, while pre-tax profit jumped by more than 25 per cent to £18 million.

Furthermore, the hotel's average occupancy rate across all of its German hotels was 70 per cent over the course of the year.

Motel One has been awarded a number of prizes in Germany in recognition of its budget offering, including Best Trendy Hotel in Germany, Best Budget Hotel, Hotelier of the year 2009 and Most Wanted Investment Partner.

Founded in 2000, the group has enjoyed impressive levels of expansion, with 39 hotels in Germany and plans to build new sites in mainland Europe as well as across the UK.

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