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Hospitality business Marriott International has entered an agreement to acquire lifestyle company citizenM to expand its global footprint in the select-service and lifestyle lodging sector.
This $355m deal, which includes citizenM’s related intellectual property, is expected to accelerate Marriott's growth and cater to guests and Marriott Bonvoy members worldwide with more options.
The citizenM brand boasts a portfolio of 36 hotels, encompassing 8,544 rooms across key cities in Europe, the US, and Asia Pacific, which include London, Paris, Rome and New York.
Additionally, there are three hotels under construction, with more than 600 rooms expected to launch by mid-2026, and potential further expansion in the coming ten years.
Established in 2008, CitizenM is known for its technology-driven accommodations, offering smart in-room designs and common areas adorned with artwork and local cultural elements.
The brand's properties also offer meeting rooms, collaborative workspaces, casual dining options, and rooftop decks.
Marriott International president and CEO Anthony Capuano said: “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 existing citizenM hotels, currently owned and leased by the seller, will enter into new long-term franchise agreements with Marriott.
The open and pipeline portfolio is expected to generate stabilised fees of around $30m per year.
Additionally, the seller could receive earn-out payments of up to $110m, contingent on the brand's growth over a set period, starting from the fourth-year post-closing.
citizenM CEO Lennert de Jong said: “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.”
The completion of the deal is subject to customary conditions, which encompass regulatory approval in the US.
With the anticipated closing of the transaction in 2025, Marriott forecasts a net rooms growth rate nearing 5% for the full year.
Financial advisory services for the seller were provided by Morgan Stanley & Co International and Eastdil Secured.