Led by Singapore sovereign wealth fund GIC, Dutch pension fund manager APG Asset Management and citizenM founder Rattan Chadha’s KRC Capital, CitizenM hotels, Amsterdam, in November raised US$1 billion in new capital for further growth.
The lifestyle brand launched in 2008 finished 2021 with 24 hotels open and reportedly wants to add 40 or more by the end of 2024. It is also focused on introducing initiatives that include fully contactless operations and creative subscription products.
citizenM, known for its dedication to design, art, technology and comfort, also demonstrated its continuing commitment to ESG transparency and improved performance by participating in the 2021 Real Estate Assessment. In fact, it achieved the highest rating available, attained by only 20% of entrants, 5 stars.
More than half of the money raised in November is being set aside for hotel development and the balance will be used to complete existing development projects and make up for revenue lost during the pandemic, according to Chief Executive Officer Klaas van Lookeren Campagne.
Despite the impact of COVID-19 on the hospitality industry, citizenM is continuing with its ambitious global expansion with the support of its investors. GIC acquired a 25% stake in citizenM in March 2019 at a €2 billion (US$2.3 billion) valuation.
As it increases its growth trajectory in the United States, citizenM was most recently opening properties in Miami, Los Angeles, Washington D.C., and San Francisco, doubling U.S. presence to 10 hotels.
HOTELS recently spoke to citizen Chief Growth Officer Ernest Lee about the state of the brand and plans for the way forward.