SINGAPORE, 30 April 2025: Marriott International has reached an agreement to acquire the lifestyle brand citizenM; a transaction that should accelerate Marriott’s global expansion of its select-service and lifestyle lodging offerings.
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 such as 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 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 travellers looking for technology-driven accommodations with features like smart in-room design, indoor and outdoor common spaces featuring immersive artwork and local artefacts, 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 travellers, our announcement builds upon Marriott’s commitment to enhance options for guests and Marriott Bonvoy members,” said Marriott International president and CEO Anthony Capuano. “We are thrilled to add citizenM as a differentiated offering to our select-service brand portfolio as we continue to strengthen Marriott’s foothold in this valuable market segment worldwide.”
At the transaction’s closing, Marriott will pay USD355 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.
Stabilised fees for the open and under-construction pipeline portfolio are anticipated to be approximately USD30 million annually. The seller may also receive earn-out payments of up to USD110 million based on the brand’s future growth 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 greatly enhancing citizenM’s global reach and brand impact. Marriott as an organisation shares our values and culture, and I am confident in their deep commitment to continuing our brand’s DNA into the future,” said citizenM Founder and Chairman Rattan Chadha
Assuming the closing of the transaction in 2025, Marriott now expects the full-year 2025 net room growth to approach 5%.
Morgan Stanley & Co. International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.
