Market entry of citizenM Hotels in Germany's top cities in cooperation with project developer GBI
Germany's largest hotel project developer GBI focuses its search for new locations for citizenM hotels in Munich, Hamburg, Frankfurt and Berlin
Berlin/Amsterdam, 23th July 2020 – The award-winning Dutch hotel and lifestyle brand citizenM has entered into an exciting collaboration with German project developer GBI. citizenM is looking for prime locations for their entry into the German hotel market. True to its philosophy ‘affordable luxury for the people’, citizenM is offering guests all the luxuries they would expect from a high-end hotel in a prime location, yet without sky-high prices. Since June, citizenM is also offering contactless stays powered by its new app.
The focus for citizenM's expansion in Germany will be on four cities: Munich, Hamburg, Frankfurt and Berlin, where citizenM plans to open several hotels in each city. GBI and citizenM will search for suitable properties and plots of land for the brand to acquire, and then develop turnkey citizenM hotels together.
With its owner-operator model – delivering a high profitability per square meter – lean operational cost structure, and a robust tech-forward approach, citizenM has been expanding its global portfolio smoothly and continuously across Europe, North America and Asia in prime locations. In March 2019, citizenM welcomed its third investor, GIC, Singapore’s sovereign wealth fund, raising the value of the company to €2 billion. GIC joins citizenM’s two other investors, KRC Capital (the private investment vehicle) and APG (the Dutch Pension Fund). Together, they have committed to invest €750 million of new equity for future hotel developments.
"It had been clear for some time that Germany, as Europe's strongest economic country and a sought-after travel destination, would be one of our next targets," says Klaas van Lookeren Campagne, CEO at citizenM, "but we needed the right partner and consultant for our expansion. We are delighted to have found this with GBI."
citizenM expansion: an ideal match for GBI's development portfolio
In the spring of 2020, the GBI Group of Companies was named Germany's largest project developer of hotels by bulwiengesa,a major independent real-estate consulting company in continental Europe. GBI’s hotel developments cover 140,000 square meters of usable space altogether. GBI has held its top bulwiengesa ranking for four years in a row.
"For GBI, the new mandate is a perfect addition to its development activities," emphasises Reiner Nittka, CEO of GBI Holding AG. "In terms of brand positioning and location requirements, this is an ideal fit. Now we can supplement further locations with exactly the right brand." The building specifications and requirements for the high-quality furnishings have already been tailored to the German environment. Now a final check can be carried out directly in the name and on behalf of citizenM to determine whether hotels can be developed at the chosen locations in accordance with the standards of the brand.