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. 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. Anthony Capuano, President and CEO of Marriott International
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. 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. 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.
Morgan Stanley & Co. International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.
About Marriott International
Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 9,100 properties across more than 30 leading brands in 142 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly awarded travel program. For more information, please visit our website at www.marriott.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.
About Marriott Bonvoy
Marriott Bonvoy, Marriott International’s award-winning travel programme and marketplace, gives members access to transformative, eye-opening experiences around the corner and across the globe. Marriott Bonvoy’s portfolio of 31 extraordinary brands offers renowned hospitality in the most memorable destinations in the world. Members can earn points for stays at hotels and resorts, including all-inclusive resorts and premium home rentals, as well as through everyday purchases with co-branded credit cards. Members can redeem their points for experiences including future stays, Marriott Bonvoy Moments™, or through partners for luxurious products from Marriott Bonvoy Boutiques®. With the Marriott Bonvoy app, members enjoy a level of personalisation and contactless experience that allows them to travel with peace of mind. To enrol for free or for more information about Marriott Bonvoy, visit marriottbonvoy.com. To download the Marriott app, go here. Travelers can also connect with Marriott Bonvoy on Facebook, X, Instagram and TikTok.
