Motel One’s Q3 report shows excellent improvements across the board

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Motel One, the European budget hotel chain, has released its business report for the third quarter of 2014 – and the news is uniformly positive. Financial performance and customer satisfaction levels are on the rise, leading investment houses have improved or maintained high rankings for the group and new hotels have opened in key locations.Highlights from the report include:

• Guest satisfaction levels continue to increase in every category, with percentage gains for friendliness, service attendance, cleanliness and breakfast. Motel One asks every guest to evaluate his or her stay, and the latest results are based on a representative sample of almost 80,000 respondents.

• Revenue grew by 25% to EUR 70 million, EBITDA grew by 16% to EUR 25 million and occupancy was at 79%.

• The group’s offer showed year-on-year growth from 44 to 52 hotels, with the newest of them opening this quarter in Leipzig and Bremen.

• The new 254 room Motel One in Bremen is located close to the old city and has a stylish nautical design, while Motel One’s second newest hotel in the heart of Leipzig has 180 rooms and a lounge with dramatic and panoramic views of the Nikolaikirche nearby.

• The German Bundesbank has raised its investment grade for the group to a level comparable with Investment Grade A of the external ratings agencies S&P and Fitch or an A2 with Moody’s.

• In its Annual Hotel Investment Ranking in October, the Treugast Solutions Group maintained Motel One’s top position in the German and Austrian markets. The ranking rates the suitability of hotel operators in the German market as business partners for investors.

• Motel One has launched a new Android app, enabling guests to browse hotel facilities and book rooms directly from their phones.
The group is delighted to report these results, and in particular are pleased with reported customer satisfaction levels, which it regards as its most important indicators for measuring success.

The group also notes that the balance sheet remains strong and investments are at a record high. Significant among these investments will be the launch in Q4 of another five Motel One hotels in outstanding micro-locations in Berlin (Leipziger Platz), Vienna (Staatsoper), Magdeburg, Prague and London (Tower Hill).

Daniel Fountain / 11.01.2015

Editor, Hotel Designs

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