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As it increases its growth trajectory in the United States , citizenM was most recently opening properties in Miami , Los Angeles , Washington D . C ., and San Francisco , doubling U . S . presence to 10 hotels .
HOTELS recently spoke to citizenM Chief Growth Officer Ernest Lee about the state of the brand and plans for the way forward .
HOTELS : How are you best competing for deals ? Why are developers choosing you ?
EL : We are always in discussions with our existing partners to do more business together .
H : What are developers looking for differently in terms of products , contract terms , key money , out clauses ? EL : Developers are constantly looking at the future of travel and making sure hotel concepts will have staying power . Our focus on high-quality design , experience and technology provides confidence to our partners that we will be as relevant in 25 years as we are today .
Our negotiations are not like a standard hotel management agreement since we are usually majority investors in our projects . We always prefer ownership .
H : Beyond the publicized pipeline , what is under development ?
EL : In addition to those cities , we have ongoing U . S . projects in California ’ s Silicon Valley and Boston .
citizenM Los Angeles Downtown
H : Can you speak about the pipeline in Europe ? EL : We have ongoing European projects in London , Paris and Rome .
H : What is GIC ’ s influence on the company ? EL : They are a highly sophisticated global hotel investor , with an important macro perspective . Any time you bring in a partner playing at that level , everyone ’ s game improves .
H : Will citizenM consider a brand extension ? EL : For now , we think the challenges of rolling out one brand is enough .
H : Can you elaborate on 2021 performance and the current outlook ?
EL : Like many other urban hotels , we had an uneven year in 2021 . When travel restrictions were not in place , leisure was strong and for some time in the fall , some business travel returned .
Ernest Lee : We are competitive for primarily three reasons : ( 1 ) we are an asset-heavy brand , ( 2 ) our business model focuses on density and operating efficiency , and ( 3 ) we focus on long-term ownership .
Developers like working with us because we create a buzz in mixeduse projects , generate better unit economics , and enhance the overall credit and visibility of a sponsorship group .
H : Are any current citizenM developers coming back for more ?
May 2022 hotelsmag . com 49