CitizenM's Potential Sale Highlights Value in Boutique Sector
Skift Take
The owners of the CitizenM hotel chain, valued at 2 billion euros five years ago and now expected to double in sale price, are considering selling the rapidly expanded brand with over 40 global locations.
The DJIA rose 477 points, Nasdaq rose 83, the S&P 500 was up 44, and the 10-year treasury yield was down 0.4. HST was up 5%, PK was up 15%, and Xenia up 10%. Marriott, Hilton, and Hyatt were up modestly.
The Financial Times reported the owners of the CitizenM boutique hotel chain are exploring a sale of the company. The owners of the Netherlands-based CitizenM include the Dutch pension provider APG, Singaporean wealth fund GIC and the founder Rattan Chadha. They are being advised by Morgan Stanley and Eastdil Secured. GIC took a 25% stake five years ago in deal valuing CitizenM at 2 billion euros including debt. They are now expected to fetch 4 billion euros if a sale does take place. Five years ago they had 15 hotels and now they have more than 40 locations and 10,000 rooms across North America, Europe and Asia.
STR reported US hotel data for the week ended 3/23. Hotel RevPAR was up 3.2% year over year on the back of a 2.5% rise in ADR. Occupancy rising 0.7
