Motel One eyes UK ‘luxury budget’ market

Germany’s Motel One is to enter the fiercely competitive UK budget hotel sector with the launch of its first hotel in Edinburgh later this year.

Motel One

Motel One Edinburgh-Royal will open on Market Street in the city in December. It is the first of several planned for the UK including a second Edinburgh hotel next year and its first London hotel scheduled for 2014.

Billed as a “designer” budget chain, Motel One currently has 39 hotels in Germany and Austria. The brand’s positioning is “great design for little money” with prices at the Edinburgh hotel starting at £69 a night.

The Munich-based chain boasts chairs inspired by the late Danish designer Arne Jacobsen and an ARCO lamp from the design house that carries the name of Italian designer Ahille Castiglionic.

Dieter Muller, chief executive of the Motel One Group, says: “Our product is young and stylish and focuses on three qualities, namely excellent location, affordable prices and high quality design and service.”

The “luxury budget” is a young but growing sub-sector. Motel One will be taking on national brands such as the recently rebranded Accor-owned Ibis Styles and the London-only Z Hotel chain. It will also be competing against Ikea’s mooted stylish but affordable chain when it launches.

Budget hotel chains are enjoying a boon as cash-conscience consumers look to save money during the recession. Whitbread-owned Premier Inn has today (7 September) announced sales increased 13 per cent in the 11 weeks to 16 August.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here