citizenM raises $1bn to expand

citizenM raises $1bn to expand

[Credit: citizenM New York Times Square]

Worldwide: GIC, APG Asset Management and KRC Capital have injected $1 billion in to citizenM, with over half of this money earmarked for new hotels.

The funding round, which involved existing investors, 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.

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 coworking 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 came to the conclusion that not much will change. People will travel maybe a little less frequently, but when they travel, they’ll travel for longer,” he added.

Singapore sovereign wealth fund GIC acquired a 25 per cent stake in citizenM (March 2019) at an enterprise value of two billion euros ($2.3 billion).

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