Marriott Acquires citizenM Brand For $355M
Marriott has today reached an agreement to acquire the citizenM brand and intellectual property for $355 million, and the deal is expected to close before the end of the year. The earliest these properties could become part of Marriott Bonvoy is 12 to 18 months […]
Marriott has today reached an agreement to acquire the citizenM brand and intellectual property for $355 million, and the deal is expected to close before the end of the year.
The earliest these properties could become part of Marriott Bonvoy is 12 to 18 months from now.
You can access Marriott’s here.
READ MORE: Marriott Bonvoy Rate & Bonus Points Offers
citizenM Location:
Marriott Brand Portfolio:
Existing Aloft and Moxy brands are exactly in the same segment as this citizenM.
Marriott Bonvoy Point & Night Earnings Per Brand:
It is not clear whether this citizenM would fit either the 10 or 5 point per US category, and it is well possible that you don’t earn full elite night credit.
Marriott’s Announcement:
Marriott International to Acquire the citizenM Brand
Today, Marriott International (Nasdaq: MAR) announced it has reached an agreement to acquire the lifestyle brand citizenM, a unique and innovative offering in the select-service segment. The transaction is expected to accelerate Marriott’s global expansion of its select-service and lifestyle lodging offerings, as the company continues to focus on expanding its portfolio to provide even more exciting options for guests and Marriott Bonvoy members around the world.
The citizenM global portfolio currently consists of 36 open hotels, comprising 8,544 rooms, across more than 20 cities spanning the U.S., Europe, and Asia Pacific, including gateway cities like New York, London, Paris, and Rome. The brand’s current pipeline includes three under-construction hotels totaling over 600 rooms that are anticipated to open by mid-2026, with the prospect of significant additional growth across Marriott’s global regions over the next decade.
The citizenM brand is known for its genuine service, tech-savvy in-hotel experience, highly efficient use of space, and focus on art and design. The brand, founded in 2008, caters to a growing demographic of value-conscious travelers looking for technology-driven accommodations with features like smart in-room design, indoor and outdoor common spaces featuring immersive artwork and local artifacts, comfortably appointed living rooms that serve as collaborative workspaces, creative meeting rooms, grab-and-go food and beverage options, and lively rooftop decks.
“As we continue to drive best-in-class experiences for travelers, today’s announcement builds upon Marriott’s commitment to enhance options for guests and Marriott Bonvoy members,” said Anthony Capuano, President and CEO of Marriott International. “We are thrilled to add citizenM as a unique, differentiated offering to our select-service brand portfolio as we continue to strengthen Marriott’s foothold in this valuable market segment around the world. Marriott has a proven track record of growing acquired brands significantly by leveraging our global development ecosystem, the benefits of our industry-leading affiliation cost structure, and the power of our award-winning Marriott Bonvoy loyalty platform.”
At closing of the transaction, Marriott will pay $355 million to acquire the brand and related intellectual property. Following closing, the citizenM portfolio will become part of Marriott’s system, with the hotels owned and leased by the seller subject to new long-term franchise agreements with Marriott. Stabilized fees for the open and under construction pipeline portfolio are anticipated to be approximately $30 million annually. The seller may also receive earn-out payments up to $110 million that are based on the future growth of the brand over a specified, multi-year timeframe. These payments would not begin until the fourth year following closing.
“We are very excited about our agreement with Marriott and look forward to this pivotal next step for our future growth. I envisage this relationship will greatly enhance citizenM’s global reach and brand impact. Marriott as an organization shares our values and culture, and I am confident in their deep commitment in continuing our brand’s DNA into the future,” said Rattan Chadha, Founder and Chairman of citizenM.
“I am excited about citizenM’s future with Marriott International. citizenM was created for frequent travelers, and Marriott’s distribution capabilities will allow us to welcome new modern guests. With the strength of Marriott’s development engine, we look forward to the prospect of many additional citizenM properties in new destinations around the world. We will continue to own our real estate and operate all our hotels. This relationship will allow us to work together to maximize returns,” said Lennert de Jong, CEO of citizenM.
The closing of the transaction is subject to various customary conditions, including U.S. regulatory approval.
Assuming closing of the transaction in 2025, Marriott now expects full year 2025 net rooms growth to approach 5 percent.
Conclusion
As I pointed out above, Marriott already has two brands that fit the exact same niche as this citizenM (Aloft & Moxy).
It is difficult to see this anything else than a defensive move to buy the brand off the market before their competitor does.
