Nearly a year after rumors of a possible sale began buzzing, Marriott International has reached an agreement to acquire the select-service lifestyle brand citizenM for $355 million.
The citizenM global portfolio currently consists of 36 open hotels comprising 8,544 rooms across more than 20 cities in 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 with more than 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.
“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,” Anthony Capuano, president and CEO of Marriott International, said in a statement. “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.”
Marriott reportedly expects the transaction to "accelerate" the global expansion of its select-service and lifestyle lodging options. Zach Demuth, JLL’s global head of hotels research, said earlier this month that the select-service hotel sector caters to a new type of traveler that is prevalent, post-pandemic. “Select-service properties really cater to those experiential travelers with their larger rooms and a slightly lower price-point than a full-service hotel,” he explained. “People are traveling for a why now instead of a what and the select-service model really appeals to them.”
The acquisition is the latest for Marriott since the company bought the City Express brand in 2023 for $100 million.
Adding a Brand
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.
"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, CCO of citizenM, said he was “excited" about the brand's future with Marriott. “CitizenM was created for frequent travelers, and Marriott's distribution capabilities will allow us to welcome new modern guests,” he said in the statement. “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."
citizenM was founded in 2008 and has technology-driven accommodations with amenities like smart in-room design, indoor and outdoor common spaces with immersive artwork and local artifacts, public space that serve as collaborative workspaces, meeting rooms, grab-and-go food and beverage options and rooftop decks.
Most of the CitizenM guestrooms are around 170 square feet, which enables the brand to fit more guests per hotel and keep room rates down, according to the company. CitizenM often relies on modular, or pre-fabricated construction, of many components, which can reduce costs for development compared with needing workers to build or assemble everything on site.
citizenM opened its first property at Amsterdam’s Schiphol Airport in 2008 and started expanding shortly after, adding another Amsterdam property in 2009, one in Glasgow in 2010 and another in London in 2012.
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. The company's earnings call is scheduled for May 6.
Morgan Stanley & Co. International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.