Marriott International to acquire citizenM

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Marriott International announced it has reached an agreement to acquire the lifestyle brand citizenM on Monday, 28th April.

citizenM is a company that specialises in unique and innovative offerings in the select-service segment. 

The impending acquisition is seen to be a great boost to the ongoing global expansion of Marriott’s select-service and lifestyle lodging offerings.

It is likewise seen as timely, given that Marriott continues to focus on expanding its portfolio to provide even more exciting options for guests and Marriott Bonvoy members around the world.

Marriott International president and chief executive Anthony Capuano said of the matter: “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. 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.”

citizenM founder and chair Rattan Chadha said: “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.”

Lennert de Jong, CEO of citizenM added: “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 maximise returns.”

What happens next?

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. 

Stabilised 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.

Also,  closing of the transaction is subject to various customary conditions, including US regulatory approval.

Assuming closing of the transaction in 2025, Marriott now expects full year 2025 net rooms growth to approach 5 percent.

Morgan Stanley & Co International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.

A brand known for service and smart tech

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. 

Founded in 2008, this hospitality firm 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.

The citizenM global portfolio currently consists of 36 open hotels, comprising 8,544 rooms, across more than 20 cities spanning the United States, Europe, and the 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.

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