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Marriott International has reached an agreement to acquire the lifestyle brand CitizenM, in a $355m (£266m) deal.
Marriott said Citizen M is 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 US, Europe, and Asia Pacific, including gateway cities like New York, London, Paris, and Rome.
The brand’s current pipeline includes three under-construction hotels totalling 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 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 rooftop decks.
Anthony Capuano, president and CEO of Marriott International, said: “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.”
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 $30m (£22m) annually.
Marriott added the seller may also receive earn-out payments up to $110m (£82m) 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.
Rattan Chadha, founder and chairman of citizenM, added: “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 organisation shares our values and culture, and I am confident in their deep commitment in continuing our brand’s DNA into the future.”
The 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%.
