CitizenM to open its first Chicago hotel later next year
December 07, 2021
Chicago Business Journal
By: Ben Miller
A Dutch hotel chain said it will open its first Chicago location at Sterling Bay’s mixed-use development at 300 North Michigan Avenue later next year.
CitizenM, which currently operates 24 hotels in 16 cities, said the new 280-room Chicago hotel will be located in the 47-story tower that also includes 289 residential units and 25,000 square feet of retail space. The Chicago hotel is one of six new hotels that the Amsterdam-based chain plans to open in around the world next year.
"CitizenM started with an idea to disrupt the traditional hotel industry by creating a luxury hybrid hotel for today’s modern travellers – eliminating the frustrations these travellers shared, in 2008," the company said on its website.
CitizenM said it planing more locations in Miami; Seattle's Pioneer Square neighborhood; Washington D.C.'s NoMa neighborhood; and in London.
"As leaders in the travel and commercial real estate sectors look ahead to 2022 and beyond, CitizenM’s ongoing expansion highlights the brand's proactive stance and strong market position as an agile and well-capitalized hotel developer, owner, and operator. In fact, CitizenM, which revealed a significant new round of funding in November, is aiming for a total of 40 or more open locations worldwide by the end of 2024," a company spokesperson said in an emailed statement. It was reported last month that the company raised $1 billion from investors.
The Chicago CitizenM hotel plans come at an interesting point in the city's current lodging situation: Last year, it was reported that the Chicago hotel market isn't expected to fully recover until at least 2023. Research from CBRE and hotel research firm STR indicated that Chicago hotels enjoyed an annual occupancy rate of 69.6% in 2019. That level won't be seen again until after 2023, when Chicago hotels are expected to have an annual occupancy rate of 67.2%, researchers said.
According to STR's latest figures, the current occupancy rate for Chicago hotels is 48.2%, down from 49.8% the same time two years ago, and below the national occupancy average of 53%. The average daily rate for Chicago hotels is $117.98, up slightly from two years ago but below the national average of $128.41. And revenue per available room is $56.89, again up from two years ago but below the national average of $68.