German budget hotel chain proves that cheap means more than cheerful

Dieter Mueller is a German hotelier with a dream, he wants to be the first to create a hotel chain that in international and makes cheap become so much more than merely cheerful. He has entered the fiercely competitive budget hotel market in Germany with the fast growing he calls Motel One, which promise top design at low prices.

It has joined B&B hotels and citizenM as part of a growing breed of new hotels that are leading the charge to challenge established heavyweights such as Whitbread’s Premier Inn, Accor’s Formule 1 and the biggest of them all; Travelodge. Mueller, who is the chief executive of Motel One as well as the founder, aims to take the cream and turquoise style of his bran into Austria, Belgium and the UK.

He says that there is no German hotel chain that has an international presence, and he aims to change that with Motel One. The city centre locations, along with the funky d├ęcor, are proving very popular with both tourists and business travellers as they reign in their budget when travelling in debt ridden Europe. The latest statistics for Motel One reveal that 60-65% of their guests are business people.

In Germany alone, large companies and corporations have slashed their budgets for business travel by around 12% since 2006, even though the time spent travelling is unchanged. This is according to the VDR Travel Association.

Nadedja Popova is a travel and tourism monitor for Euromonitor and has said that budget hotels are making a strong bid to attract cost conscious consumers who want stylish accommodation by remodelling the rooms and the atmosphere to try and achieve the look that have made boutique hotels famous, but as a greatly reduced cost. Popova added that the sales for budget hotels rose 10% last year, a 41% share of the European hotel industry.