citizenM Raises $1bn For Expansion
Main Photo: citizenM New York Times Square
Date: November 2021
Name: citizenM
Location: Global – Europe, USA and Asia
Number of Keys: 20 hotels – 4,760 open with a further 16 planned to take them to 8,545 keys
Seller: N/A
Buyer: GIC, APG Asset Management and KRC Capital
CitizenM has raised US$ 1 billion in new capital from its existing investor base. The investors in this round include APG Asset Management, GIC, and CitizenM founder Rattan Chadha’s KRC Capital. Over half of this money is earmarked for new hotels.
The funding round will help the company complete existing development projects and recoup lost revenue during the pandemic. 40 plus hotels are expected to open by the end of 2024, with 24 set to launch by the end of 2021. CitizenM hotels have sprung up in the U.S. with CitizenM Los Angeles downtown which opened in September 2021. and CitizenM San Francisco Union Square.
To help shore up revenue when demand was low, citizenM launched a corporate subscription offer. Travellers pay monthly or annually for use of the hotel’s co-working spaces, ability to book meeting rooms, and stay three nights per calendar month at any citizenM property worldwide.
“It has not been business as usual, but the long-term strategy with our shareholders is unchanged. We are patient. We have all gone through many crises in the past,” said CEO Klaas van Lookeren Campagne in an interview with Bloomberg.
“We pretty quickly concluded that not much will change. People will travel maybe a little less frequently, but when they travel, they’ll travel for longer,” he added.
In March 2019, Singapore sovereign wealth fund GIC acquired a 25 per cent stake in citizenM at an enterprise value of two billion euros ($2.3 billion)
Capital Raised: US$1 billion
THPT Comment: Like many hotel brands, citizenM has been hard hit by the pandemic. However, this new investment demonstrates confidence in a brand which clearly intends to grow quickly. From their start in 2008, citizenM have bought a new take on the boutique hotel concept. Well done Rattan and Michael Levie.
First Seen: Boutique Hotel News
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