Attitude matters

How citzenM is reshaping how the industry thinks about hotels

Interview by Michael J.Pallerino

Like any groundbreaking new brand, citizenM started as an idea to disrupt the status quo. So, when it came to the hospitality sector, the Netherland-based hotelier had to think outside the proverbial hotel box, i.e., not delivering an experience that your father wants, so to speak.

What it delivered was a luxury hybrid hotel model aimed at giving modern travelers what they want—affordable luxury. citizenM (the M of which stands for Mobile) is designed around travelers who value a luxury hotel experience in central city locations, but at prices they can afford. The kind of hotel where you can sleep, work, relax and play. By being a brand that is not afraid of doing things differently, citizenM created a hotel concept for the new millenium—one that pushes boundaries to pull its guests into the mix. To get in the know, we sat down with Ernest Lee, Managing Director, Americas, at citizenM, to get his thoughts on how the brand— and the hospitality market—is shaping up in today's new landscape.

Give us a snapshot of the citizenM brand

citizenM was launched in 2008 with the goal of disrupting the traditional hotel industry. From the start, our philosophy has been "affordable luxury for the people.” Our aim is to create hotels for the modern traveler, giving them everything they need and nothing they don’t. In practice, this means central locations in the world’s most exciting cities, but at an affordable price. As a brand, we’re dedicated to design, art, technology and comfort, and we give guests everything they expect from a high-end hotel.

What type of consumer are you targeting?

Our core consumer is a particular type of traveler—the mobile citizen—and we actually named our brand after this customer profile (the ‘M’ in citizenM stands for “mobile”). Mobile citizens travel frequently, for work and also for pleasure, or some combination of the two, and they value a luxury hotel experience in a central city location at an affordable price. Every decision we make is based around these travels and their ever-evolving appreciation of luxury and value. To that end, over the past year, we’ve also introduced some new products that respond to how we believe these customers will travel and live post-pandemic. For example, our corporate subscription program offers an opportunity for distributed “teams ”of mobile citizens whose companies have adopted remote or hybrid work policies. This service creates a single place for guests to stay, play and meet when they travel for work. How does your hotel design cater to today's consumer?

Our hotels are designed as more than just places to sleep—they also offer somewhere to work, relax and play. All citizenM properties place an emphasis on comfortable, well-designed and highly functional space, from our art-filled living rooms full of Vitra furniture, to our societyM meeting rooms and cloudM rooftop bars. These are really flexible environments that can serve a wide range of consumer needs over the course of any day, especially now that remote and hybrid work are popular. As a result, more internal company travel and desire for “third” places, which are here to stay. It will be crucial for hotels to fill a number of different roles, from restaurant, to office and meeting space, and post-work hangout. Our design approach means we are able to cover this wide range of uses and needs under one roof, which is really valuable for our guests.

Walk us through your hotel design.

It is impossible to walk into citizenM and confuse it with any other hotel. This is by design, and it is a direct response to what our customers want and need from a hospitality environment. citizenM hotels are planned and designed to maximize everything that frequent travelers need (such XL king-size beds, spacious living rooms and personable service) and to minimize everything this

Travel is changing, and it will look different than it did pre-pandemic. This is especially true for business travel. What’s different, though, also can be better.

EST 2010

cohort does not need or want (front desks and elaborate check-in, concierge services and ironing boards in every room). Guest experience is really the key driver of design. Every citizenM hotel has a signature living room filled with locally commissioned art, hundreds of books, designated workspaces and comfortable couches. By focusing on a streamlined guest experience—such as app-based check-in—we’re able to recapture usable floor area and give it back to our customers in the form of food services, lounge areas, and work spaces. Our guest rooms are another expression of our brand values, because they offer exactly what customers need: an XL king-size bed with high-quality linen, a powerful rain shower, superfast free Wi-Fi, and the ability to control lighting, HVAC and entertainment through the app. We also take a similarly focused approach to the exterior of our hotels, many of which feature unique public artworks that can serve as an asset and point of excitement for the surrounding community.

Take us through your construction and design strategy.

We approach construction and design like a retail company, which means we view ourselves in the product business, not the project business. Our strategy focuses on pursuing standardized design with scalable processes that enable our rollout. We can adjust these for the nuances of particular local markets, but our goal is to be faster, better, and more cost-effective with every effort. To that end, we take full control of our product and stakeholder chain. We bring every discipline under one roof as a fully integrated developer, investor and owner-operator, which allows us to consolidate decision-making and more effectively balance cost and quality. We also capitalize on technology as a core of our construction and design strategy. For example, since the very beginnings of citizenM, we have adopted modular construction (where possible) as a key part of our building practices, which gives us both speed and quality control. We’re excited to be opening a new modular hotel in Los Angeles this year, after opening a modular property in Seattle last summer.

What’s the biggest issue today related to the construction side of the business?

The biggest issues today are inflation, inflation, inflation. The impact of labor shortages, materials price increases, supply chain bottlenecks, all exacerbated by COVID has significant impacts in just about every market we are active in around the world. Sustainability also is a crucial issue that will influence construction, particularly being able to design to a level meeting even more ambitious ESG goals while balancing a healthy rollout space.

Talk about sustainability.

citizenM has always been an advocate for sustainable practices, from adaptive reuse and modular construction where possible, to highly efficient operational strategies that minimize waste and energy consumption. We also undertake a constant assessment of our footprint, which is not to be overlooked because in order to improve, we need to know where we stand on an objective basis. Now, we’re accelerating our commitment to environmental, social and governance (ESG) activities. Our ESG vision is to influence positive change in a world where we are simply guests; our strategy focuses on operating and building healthier, greener hotels, doing the right thing for our people and communities, and engaging our guests with transparent information about our activities.

Two of our key priorities include third-party sustainability benchmarking and future-proofing of all hotels. In 2020, for example, we achieved a 25% year-overyear jump in our brand’s Global Real Estate Sustainability Benchmark ranking. We also received green building certifications for our newest US hotels in Boston, Washington DC and Seattle. In terms of construction and operations, we focus on smart, sustainable design strategies and by optimizing energy use in every hotel, we're able to meet our own stringent environmental goals.

What do you see as some of your biggest opportunities moving ahead?

We see a lot of opportunities to meet the needs of an evolving market in creative ways, and we’re excited to serve new types of travelers. Already our new products have received a lot of interest from digital nomads, as well as commercial real estate leaders and corporate travel managers, so we see strong demand for these services. When you look at the various demographic and geographic shifts that are accelerating nationwide, this makes sense. For example, more corporate employees are engaging in remote and hybrid work, and more people also are launching entrepreneurial ventures and entering the “creator economy.” So what we’re seeing— and real estate analysts, economists, and other academics back this up—is decentralization and dispersion not just in terms of where people live, but also in terms of the way companies are organized. Our position is that this new remote-hybrid environment is actually quite beneficial for us as a hotel company, because we can offer corporate subscriptions and other consumer products that directly serve this market, and we’re well placed geographically to capitalize on it.

What have been some of the adjustments you have made over the past year (with everything happening)?

We had a busy 2020. In addition to opening two US hotels during the pandemic, in Seattle and Washington, DC, and completing numerous deals for new projects, we also worked hard to even further improve our business model. Our perspective was “let’s come out of this period with a better product and give guests more.” This was a good time to accelerate certain strategic investments, including in technology—both in our back-end infrastructure and also new consumer-facing products. In terms of specific products, we launched app-based, fully contactless operations across all of our worldwide hotels. We also created business-focused initiatives that creatively monetized underused space and cater to evolving consumer needs. Corporate subscription by citizenM, for example, incentivizes guest loyalty with transferable stays that offer access to guest rooms and meeting space in any of citizenM’s hotels worldwide, both for individuals and employers.

Are you optimistic about what you’re seeing out there?

Yes. This is an opportunity for innovative, well-capitalized companies to take advantage of serious shifts in how consumers will approach the market post-pandemic. Travel is changing, and it will look different than it did pre-pandemic. This is especially true for business travel. What’s different, though, also can be better. For creative, agile, and

forward-thinking hotel brands there certainly is cause for optimism. Business travel, for example, will still be important, but we’ll see new use cases. More people will combine work trips with leisure trips, a so-called “bleisure” travel that may lead to longer hotel stays. As corporate workers become more dispersed, there will likely be an increase in business travel when those workers all converge on headquarters for in-person strategizing and meetings. Hotel brands like citizenM, with an active project pipeline, strong capitalization and a nuanced understanding of core customer needs, will be able to innovate and find success.

How do you select your locations?

Our site selection process is fairly simple: We look at the world’s best cities—both well-established and on the rise—and locations where culture and commerce intersect. We look for prime sites that put our guests within walking distance of important attractions, and we always seek to establish ourselves in neighborhoods where we can become an integral part of the community itself. Our hotels are assets for the local community as well as for our guests.

What is your growth plan?

We plan to continue our global rollout as a fully integrated owner-operator in key gateway cities. It’s a vigorous growth strategy, and we’re preparing to open two additional West Coast hotels, citizenM Los Angeles Downtown and citizenM San Francisco Union Square, along with two properties in Miami and a second property in Washington DC. citizenM also has additional hotels in development in Chicago, Seattle, Austin, Menlo Park and several other North American cities. We’re looking at strategically located metropolitan regions in a wide geographic range, and some of our main targets are Nashville, Denver, San Diego, Atlanta and Dallas. Internationally, citizenM is launching a new hotel on the ChampsÉlysées in Paris later this year. We’re also targeting Berlin and Frankfurt in Germany, Rome in Italy, as well as several other strategic cities and countries. CCR

We see a lot of opportunities to meet the needs of an evolving market in creative ways, and we’re excited to serve new types of travelers.

How to Make Your Advertising in CCR…

By Jim Nowakowski, President Accountability Information Management, Inc.

We do a lot of advertising research. And today, there’s a lot of confusing information about what advertising is and isn’t.

The Readership Circles chart on the right will help you cut through this confusion. Because today, an “ad” is just part of the equation: readers get information digitally. They go through Google to fi nd you (over 4-billion searches each day), so your ad investment in CCR is just part of the equation. This article explains how to maximize that investment.

Content is the Key

Your ad appears in the print and digital version of the media outlet. The publisher of CCR, David Corson, invests most of his time and money building his “overall audience” for your ad (you can see his audience in this auditing tool: http://intrln.com/ccr)

But he also has his website to handle the audience he can’t control: the Google audience. Therefore, you can help maximize your investment by sending in your company information for CCR's website. The more content you have on the internet, the more chances you have of being found and purchased. Simple, huh?

Your Product is Really Information

No matter what product or service you are selling, your real product is information. Thus, you are in an information war competing for the attention of buyers with not just your competitors, but with everyone on the internet. The more content you have that’s yours, the more opportunities for them to see you and go through the readership circles.

Why We Know This

AIM places a tracking code on CCR’s website and each month monitors visitors. Then, because you advertise, you receive 10 “dossiers” seen on the right on companies who have consumed data – companies that represent high-valued targets because their need is NOW for what you are selling. ACCOUNTABILITY WEBSITE AUDIT Accountability Information Management, Inc.

SEPTEMBER 2020

David Corson has us audit this activity. You receive this audit if you advertise, and it represents a rich fi eld of leads for you. Call David Corson 678.765.6550 today to fi nd out more details! Or, call us and we’ll help you understand the powerful information at your disposal.

Always Trusted Information Accountability Informati on Management, Inc. 553 N. North Court, Suite 160 Palati ne, Illinois 60067 847-358-8558 www.a-i-m.com

CCR-MAG.COM

IMPORTANT. This audit covers the above website for the period of September, 2020. It was conducted by allowing Accountability Information Management, Inc. (AIM) by placing a proprietary Code on the website to provide deeper analytics from the thousands of monthly visitors to the website to the publisher (i.e., the companies utilizing the website). AIM is in the business of auditing and verifying data. For information, contact: AIM, 553 N. North Court, Suite 160, Palatine, Illinois 60067. PUBLISHER’S STATEMENT. Commercial Construction & Renovation, CCR-MAG.COM, is a community of leading commercial construction professionals within the retail, restaurant, hospitality, health care, federal, multifamily and other commercial sectors. The website content spans the design, construction and facilities operations of major commercial construction segments to meet the information needs of today’s high level executives. Visitors will find information relevant to the collaborative management process required to complete projects on time and on budget, and to efficiently manage these facilities. PRIVACY. F&J Publications, LLC discloses the information we collect on this website and how it is used. This report is based on visitors to CCR-MAG.COM. Specifically, the information in this report is aggregated to provide our advertisers information on website usage. F&J Publications always reserves the right to release information about visitors, including non-personal information.

NUMBER OF COMPANIES XXX This is the number of companies that the Code identifies. This number is the monthly universe of companies that can be identified from the thousands of visitors to this website. NUMBER OF TIMES THESE X,XXX This is the number of times these companies visited the website. The average per company is 1.41. PAGE VIEWS BY X,XXX This is the number of page views that these companies viewed on the website. The average pages viewed by a company this month is 2.04. SEARCH TERMS USED BY XX This is the number of identifiable different search terms these companies used to arrive on the website. The search terms, for example, were put into a browser which delivered results. Among the results was a page on this website. For example, while many people find it by typing in “commercial construction and renovation” or “CCR” in a search engine like Google or Bing, other terms deliver specific pages from this website based on what users type into the search engine. These searches account for less than 5% of the total search terms used. The top ten (listed) account for 48% of the identified total (not counting CCR itself). INDUSTRIES XX This is the number of companies that the Code is able to classify. It represents 5% of the total companies that visited this website, and is supplied for reference only. See UNDERSTANDING THE DATA. FIRST PAGE VIEWED X,XXX The Code keeps track of the first page viewed by the companies, and is the same number of times the companies came to the website. The chart Key First Pages Viewed lists the top ten landing pages from this grouping (excluding CCR-MAG.com itself, which is among the top, but not more than 12%).

SEARCH TERMS USED TO REACH US

• “Christopher Bushnell” AND Social Security • gary falco architecture • hi macs color TERRAZZO LUNA • inverter eon model el3 10 watt pricing • metal work very essential tools • mulehide jts1 colors • penncolor uv dispersions • permeable pavement concerns • rampart yellow wallcovering • silicone molds

KEY FIRST PAGES VIEWED (other than CCR-MAG.com)

• 7-essential-tools-for-your-metalworkingprojects • what-is-soil-reinforcement-and-how-is-it-done • 8-important-safety-measures-forconstruction-sites • new-menards-store-in-paducah-ky • construction-procurement-101 • conversations-with-bennett-van-wert-dwm • conversation-withbobby-darnell-cmc • american-dream-mall-in-nj-to-reopen-onoctober-1 • cny-group-names-new-vp-of-people-andculture • the-impact-of-building-materials-inconstruction

COUNTRY BREAKDOWN OF COMPANIES

United States XX%

India X%

Pakistan Canada United Kingdom Other (64 countries)

UNDERSTANDING THE DATA

This report is provided to you from the publisher to help you understand the creation, distribution and consumption of information on the digital highways. The companies that are provided to you in this report have visited CCR-MAG.COM and consumed information. Knowing the name of the company gives you a “heads up” to pursue for your sales efforts. If you need to explore additional ideas, including ways to utilize this information, please contact the publisher or AIM directly. In addition to the INDUSTRY/COMPANY listings, you will see a list of companies that are not categorized by Code into industries. These are sometimes more valuable and should be considered carefully for your sales efforts. Finally, often a company will utilize a general channel (like Comcast), which does not provide the individual company’s IP. These visitors are often just as valuable in terms of “what” they consume on our website. We would happy to help you pursue this type of analysis.

No matter where you place your message, this is the pattern of what we call the “Readership Chain.” And the weakest link in the chain will break it. That’s why you need as much content as you can on the Internet. People, your buyers, get distracted easily. Your messages must be compelling.

...Pay Dividends.

The magazine or newsletter or website has a specifi c number of possibilities - the overall audience. possibilities - the overall audience. You must factor that into ROI.

Some convert into readers of your message.

Not all people will "see" what you are selling. You must know some of these basics.

Some also raise the hand and ask for information.

Accountability Tools from CCR

The audience audit tool (on the left) enables you to see CCR’s audience for yourself. The Company Dossier tool on the right highlights 10 companies who have consumed CCR content that month for your marketing purposes. Advertising in CCR gets you these dossiers. And there’s much more. Below are the highlights from the prior month for your review. Imagine being able to see who is consuming content like this, and then putting them in your marketing sights!

ACCOUNTABILITY WEBSITE AUDIT

Each month advertisers receive powerful information to help them market their products and services. Here is a taste. 98,819 pages were consumed by over 2,000 companies. Among them:

• Architectural fi rms like HDR Inc. and Smithgroup • Universities like Illinois Wesleyan, Yale or University of Massachusetts • Energy companies like BP America or Schlumberger • Financial companies like American Express, Mckinsey & Company and Wells Fargo • Materials companies like USG Corp and Carlisle • Industrial companies like Aecom, Eaton and General Dynamics

And thousands more like CBRE, Texas Instruments, Goodyear, St. Lukes Episcopal Hospital. All these companies have projects going on – projects you can access to sell your products and services.

Call the publisher, David Corson for a complete details. 678.765.6550. Or email him at: davidc@ccr-mag.com.