Marriott International will acquire the lifestyle brand citizenM, enhancing its portfolio of select-service and lifestyle hotels. This acquisition is expected to support Marriott’s global expansion in these segments, aligning with the company’s strategy to broaden its offerings for guests and Marriott Bonvoy members.
The brand citizenM currently operates 36 hotels, with 8,544 rooms, across more than 20 cities in the US, Europe, and Asia-Pacific, including major cities such as New York, London, Paris, and Rome. The brand’s pipeline includes three hotels under construction, adding over 600 rooms, expected to open by mid-2026, with potential for significant growth across Marriott’s global regions in the next decade.
Founded in 2008, citizenM is recognised for its efficient use of space, tech-driven in-hotel experience, and emphasis on art and design. The brand caters to value-conscious travellers, offering smart in-room features, collaborative workspaces, meeting rooms, grab-and-go food and beverage options, and common areas with artwork and local artefacts.
Upon closing, Marriott will pay US$355 million for the brand and its intellectual property. The citizenM portfolio will then operate under long-term franchise agreements with Marriott, with an estimated annual fee income of around US$30 million from the open and under-construction hotels. The seller may also receive additional earn-out payments of up to US$110 million, based on the brand’s future performance over a specified period, starting from the fourth year after closing. Morgan Stanley & Co. International plc and Eastdil Secured served as financial advisors to the seller.
The transaction is subject to customary conditions, including US regulatory approval. If completed in 2025, Marriott expects net rooms growth for the year to approach five per cent.
Anthony Capuano, president and CEO of Marriott International, commented: “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.”
“I envisage this relationship will greatly enhance citizenM’s global reach and brand impact. Marriott as an organisation 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.
