Marriott International has announced that it has reached an agreement to acquire the lifestyle brand citizenM. It will pay $355 million to acquire the brand and related intellectual property which 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.
The company say that 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.
The company said in a statement, ”Following closing, the citizenM portfolio becomes 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.”
Anthony Capuano, President and CEO of Marriott International said, “As we continue to drive best-in-class experiences for travellers, 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.”
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 Glasgow. The brand’s current pipeline includes three under-construction hotels totalling over 600 rooms that are anticipated to open by mid-2026.
The citizenM brand is known for its 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 travellers looking for technology-driven accommodations with features like smart in-room design, indoor and outdoor common spaces as well as creative meeting rooms.
Rattan Chadha, Founder and Chairman of citizen 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,” said Rattan Chadha, Founder and Chairman of citizenM.
Lennert de Jong, CEO of citizenM said, “I am excited about citizenM’s future with Marriott International. citizenM was created for frequent travellers, 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.”
Picture credit: Marriott International/© Richard Powers
