Morgan Stanley Real Estate is to buy a 35% stake in Motel One Management, the German budget hotel brand.
The original investors in the chain, which is currently 17-strong with 2,300 rooms, will retain a 65% holding.
Dieter Muller, co-founder and CEO of Motel One, said: “We’re certain that in addition to their financial investment Morgan Stanley’s specific real estate market knowledge and network will be of great help to Motel One in our continued strategic development.”
John Carrafiell, global co-head of Morgan Stanley Real Estate Investing, said: “We believe that Motel One is very well positioned to capitalise on the attractive opportunities for the sector in both Germany and other CEE city centres.”
Motel One said that it has signed contracts to grow to 28 hotels with more than 5,000 rooms. A large number of the properties will be owned by the company via its Motel One Real Estate subsidiary.