Road to Value BV
Drie Gebroeders 15
2342 CL Oegstgeest
The Netherlands
January 2008 - December 2008

Value creation

CitizenM
www.citizenm.com

CitizenM

Situation

Arranging bank financing for most start up companies is nearly impossible, with the exception of certain stimulus loans or mezzanine loans. In this particular case, CitizenM is a new entrant to the hotel business, with a totally new modular building system, a fresh customer proposition and a new brand.

Task

While working for KRC Capital BV, a private equity fund focused on leisure, real estate and fashion segments, Christian Rood as founder of Road to Value was engaged to help arrange bank financing for new CitizenM hotels in Great Britain. Although financing was in place for the first two hotels to be developed at Schiphol and in Amsterdam, there was no hotel in place yet. With the credit crisis starting early 2008, the challenge was to arrange debt financing from new banks for hotels in Great Britain, specifically for Glasgow as the first location.

Action

- Developed bank case based on existing information memorandum
- Discussed terms sheet with a range of international banks
- Negotiated terms sheet for Glasgow location and template terms sheet for new locations with leading UK bank
- Closed (structured) finance documentation for Glasgow location

Result

CitizenM Glasgow is expected to open soon. More locations in the UK market are expected to be realised in the mid term.