citizenM Hotels Gets New Investor, $842M in Equity
- Mar 29, 2019
A new name will soon join the equity investor team at Netherlands-based citizenM Hotels. GIC, the sovereign wealth fund of the Government of Singapore, has entered into an agreement to purchase a 25 percent interest from the hotel company’s two original investors, KRC Capital and APG. The deal attaches a value of €2 billion, or approximately $2.2 billion, to the company.
citizenM made its debut in 2008, billed as a luxury hybrid hotel offering high-end accommodations and experiences at affordable prices. With GIC joining company investors KRC and APG—the investment vehicle of entrepreneur Rattan Chadha and a Dutch pension investor, respectively—the three-party investment team will contribute €750 million, or $842 million of equity.
“With the increase in committed capital, citizenM can further accelerate its growth strategy,” Robert-Jan Foortse, who is responsible for the European property portfolio of APG, said in a prepared statement.
More to come
citizenM has expanded its footprint with the addition of 14 properties worldwide since the Dutch hospitality brand first came online with the opening of the 230-key citizenM Schiphol Airport in Schiphol, roughly 15 miles outside Amsterdam. Newer offerings include the three-year-old, 300-key citizenM Tower of London Hotel in London and Manhattan’s 300-key citizenM New York Bowery Hotel, which opened in fall 2018 with the distinction of being the largest modular hotel in New York City.
There’s more to come from citizenM—the company is in the midst of a growth spurt, with a secured development pipeline accounting for an additional investment of more than €1.5 billion, or approximately $1.7 billion. Target locations for citizenM span Europe, Asia and the U.S., where the company is presently working on such destinations as citizenM Boston North Station Hotel, which will feature 269 keys upon its scheduled opening later in 2019.