CitizenM hotels owners exploring ‘potential sale of the business'

The owners of the Netherlands-based hotel chain CitizenM are reportedly exploring a sale of the business.

The Financial Times reported CitizenM's owners, which include founder Rattan Chadha, the Singaporean wealth fund GIC, and the group's largest shareholder, the Dutch pension provider APG, are being advised by Morgan Stanley and real estate investment bank Eastdil Secured.

GIC took a 25% stake in CitizenM in 2019, when the boutique group had 15 hotels.

People familiar with the matter told the Financial Times that "deliberations were at an early stage and the company could also pursue the sale of a minority stake".

The Caterer understands CitizenM is looking for new growth capital.

CitizenM opened its first UK hotel in Glasgow in September 2010, with room rates starting from £49. It has since opened four properties in London, including in Shoreditch and Tower Bridge (pictured).

The brand's hotels are billed as offering 'affordable luxury', with compact rooms and facilities controlled by iPad tablets.

The group currently operates 34 hotels across 20 cities globally. According to its website, it is developing hotels in Boston Back Bay and Miami South Beach.

CitizenM opened its first hotel in 2008 at Schiphol Airport in the Netherlands.

The Caterer has approached GIC and APG for comment.

CitizenM and Morgan Stanley declined to comment.