Today, Marriott International announced it has reached an agreement to acquire the lifestyle brand citizenM, a unique and innovative offering in the select-service segment. The deal is expected to accelerate Marriott’s global expansion in select-service and lifestyle accommodations, as it continues to expand its portfolio and provide more exciting options to guests and Marriott Bonvoy Members around the globe.
The citizenM portfolio is currently comprised of 36 open hotels in the U.S. and Europe. There are also 8 544 rooms spread across 20 cities, including key cities such as New York City, London, Paris and Rome. Three under-construction Marriott hotels, totaling more than 600 rooms, are expected to open in mid-2026. Marriott is also expecting significant growth throughout its global regions.
The citizenM hotel brand is known as a place of genuine service and efficiency, with a focus on design and art. The 2008-founded brand caters to value-conscious travelers who are looking for accommodations that offer technology. It offers features such as smart in-room designs, indoor and outdoor communal spaces with immersive artworks and local artifacts.
Marriott Bonvoy and guests will benefit from the announcement today, as Marriott continues to provide best-in-class travel experiences. Anthony Capuano – President and CEO Marriott International. We are excited to add a unique and differentiated brand, citizenM, to our portfolio. This will help Marriott to further strengthen its position in the select-service segment of the market. Marriott has proven to be successful in growing acquired brands by leveraging its global development ecosystem, our industry-leading affiliate cost structure and our award-winning Marriott Bonvoy platform.
Marriott will pay 355 million dollars at the closing of the deal to acquire the brand, including all intellectual property. After closing, Marriott will take over the citizenM portfolio, and the hotels that are owned or leased by the seller, subject to long-term Marriott franchise agreements. The stabled fees for the pipeline of hotels that are open or under construction will be around $30 million per year. The seller could also earn up to $100 million in earnings based upon the growth of the brand within a specific, multi-year timeline. These payments wouldn’t begin until four years after closing.
“We’re very excited about the agreement we have with Marriott, and look forward this next pivotal step in our future growth. This relationship, I believe, will significantly increase citizenM’s brand awareness and global reach. Marriott shares our culture and values, and I’m confident that they will continue to build our brand DNA in the future,” said Rattan Chadha.
“I am very excited about citizenM’s partnership with Marriott International.” Marriott’s distribution abilities will enable us to welcome more modern guests. Marriott’s strong development engine will allow us to open many more citizenM properties around the globe. We will continue to operate and own all of our hotels. We will be able to maximize our returns by working together,” said Lennert de Jong CEO of citizenM.
The closing of the transaction depends on a variety of conditions, such as U.S. regulatory approval.
Marriott’s current projections for 2025 assume that the transaction will be completed by 2025. Marriott now expects net room growth in 2025 to reach 5 percent.
Morgan Stanley & Co. International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.
