Innovation

In 2011, Mr. Panya Boonsirithum was tapped by his employer to spearhead the corporate social responsibility of their company. Since the company is a construction and development company, they did not go far in giving back to the community and started the Citihub worker’s dormitory. The first task is how they can build the project at a lower cost so that they can offer it to workers at an affordable price. They researched panel houses in China and studied the cost. They also came across the use of scrap container vans. Upon assessment of the cost of both materials, it was almost the same. Rather than importing the raw materials from China, they decided to use scrap container vans as they thought it would be more sustainable.

They only started with four container vans with a capacity of sixty-six beds. The first Citihub dormitory is in Mandaluyong, which is accessible to jeepney routes going to Makati and Manila. After their trial and error stage, five years of research and development in running a dormitory, Mr. Boonsirithum decided to incorporate Citihub. He turned this corporate social responsibility project into a for-profit social enterprise and registered the company, but it still embodied the same mission and vision of helping marginalized Filipinos have a dignified and decent halfway house in the city.

Citihub now has four locations: Mandaluyong, Sta. Mesa, Manila, Cainta, Rizal, and Balintawak, Quezon City. The innovations in design and construction using the scrap container vans made the cost cheaper and allowed them to offer a rental as low as Php 1,900 per month or Php 63.33 per day. The rent covers water, electricity, cable tv, and wifi access. The sites also have 24-hour CCTVs, fire alarms, and fire detection systems.

Safe, Clean, and Affordable Housing

Inspiration

At 40, Mr. Boonsirithum decided to follow his passion, which was a turning point in his life. He asked himself, “Will I continue working for corporate, or will I follow my passion for continuing Citihub? If I do corporate, most likely at my age, I will be corporate all the way, or if I choose Citihub, there might be a risk, but at least I’m following my passion.” After contemplating, he decided to push forward his career in his passion project, Citihub. According to him, along the way, it was not easy. Like any other business, there’s no guarantee that you will not encounter challenges and failures but it did not hinder him from moving forward and continue learning the ropes of running a dormitory until he mastered it and achieved efficiency in their daily operations. He quipped, “Not all failures are bad things. If you are afraid to fail, it means that you are also afraid to take chances and move forward. And how can you grow? Growth requires some certain risk.”

Aside from the company’s mission and vision of helping low-income earners, the company also employs 100% physically challenged individuals from poor families. This also served as an inspiration to Mr. Boonsirithum to continue his passion. Providing jobs to these individuals brings them self-dignity and productivity. It also gives them equal opportunities despite their physical condition.

Overall impact

Citihub is still working on making a mark in the business landscape and is still considered a minor player in their industry. Despite this, the impact they brought on low-income Filipino workers is significant. Providing a low-cost halfway house and a decent living space with all the essential utilities like potable water, electricity, toilet, and even cable TV and wifi access are the amenities that low-income workers can enjoy at Citihub. They can have it by paying a minimal amount and not using a big chunk of their salaries. Citihub adds value to workers by providing dignified living conditions. It gives the workers an alternative option rather than living in a slum area with no basic utilities, being exposed to danger, and at a much higher rental rate.

Since they are offering it at a cheaper rate, many would expect they are not making any profit. According to Mr. Boonsirithum, "We have been operating sustainably, and if not for the pandemic, we probably would have opened some more branches." He is very bullish about Citihub's future and expects their growth in the coming years.

Further, employing 100% physically challenged workers is another endeavor that impacts our society. Helping these individuals to learn skills is a life-changing opportunity for them. It makes them feel valued, which brings back their self-dignity and self-respect. Citihub's initiative, by facilitating the integration of physically challenged individuals into mainstream society, bring down the barriers to inclusivity and equality.

Aside from providing them jobs, Mr. Boonsirithum was very proud to say that they also have a career program for their workers. He keeps them inspired and enlightened by reminding them, "Life might sometimes seem unfair, but if you let it control you, nothing will happen, and you will only feel depressed. What if we come up with a way to deal with it and see how we can all improve ourselves." One of the career programs they have is upskilling their employees, like cleaning air conditioning units. They taught this skill to their housekeeping workers, who were all deaf. Rather than outsourcing the services, they get the workers' to do the cleaning and pay them. This means extra income for their workers. In addition, they treat their resident managers as an intern. They are the ones who oversee the dormitory's daily operations. After three years in Citihub, their career goal is to be employed in a one-star hotel so they also receive extensive training in hospitality management.

Through this, Citihub can be an inspiration for others doing business that they exist not only for profit but also to help individuals improve their lives.

Business benefit

The main stream of revenue of Citihub is through property management. Citihub doesn’t own the land. Their business model is a joint venture or partnership, wherein they look for idle properties within Metro Manila. After identifying the idle properties, they approach the property owners and offer the business proposal. If the owner agrees that his land will be leased for the container dormitory, the profit sharing will be 80% to the owner and 20% to Citihub. The property owner will not have any problem running the business because Citihub will be in charge of all business operations. When the owner decides to take the land back, Citihub will pull out the container vans and transfer them to another location. This is how mobile the container dormitory is.

Before the pandemic, Citihub’s occupancy rate was 95% capacity totaling 1,200 beds. Their collection rate is above 95%. The company’s structure is very lean, with only one resident manager per site managing their daily operations and four housekeepers. They could do it efficiently because of the automation of their processes. Their booking system is online, similar to booking an airline ticket. The resident manager has visibility of the rental due dates and collection report. They had established policies and house rules for all residents to maintain the property safe and conducive to living.

Mr. Boonsirithum’s stated his vision for Citihub “is to have one branch in every city of Metro Manila.” He is confident they can achieve this and expand in every city with their business model. Advocating his passion for helping people will be critical in fulfilling his vision for Citihub.

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Social and environmental benefit

Citihub’s business innovation has addressed one of the problems in the Philippines regarding city dwellers with no decent living space. Some of them are workers who live on the outskirts of Metro Manila. The rising cost of properties in Metro Manila is a factor that would be difficult for a low-income worker to have access to a clean and safe dwelling with essential utilities. Often, low-income workers opt to stay in slums because of a lack of options. The transportation cost and travel time are the challenges these workers face daily. The business innovations brought by Citihub to low-income Filipino workers provided a solution to make cities and human settlements inclusive, safe, resilient, and sustainable.

Citihub’s initiative of employing physically challenged individuals reduces inequalities and promotes inclusivity within our society. It was a considerable risk for the company, being a start-up, to hire them but this doesn’t stop Citihub. They had put their trust in these people and provided opportunities for them to be self-sufficient and productive citizens of our society. According to Mr. Boonsirithum, “One of our Resident Managers is a PWD, but it doesn’t stop him from doing his job well.” This is an inspiration to hear that we hope can influence and lead other companies to do their share.

Interview

Panya Boonsirithum, Founder, President and CEO