Marriott International to Acquire the citizenM Brand

Marriott International has announced it has reached an agreement to acquire the lifestyle brand citizenM, 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 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 totaling over 600 rooms 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, efficient use of space, and focus on art and design. Founded in 2008, it caters to value-conscious travelers seeking technology-driven accommodations with features like smart in-room design, immersive artwork, comfortable living rooms for collaborative workspaces, creative meeting rooms, grab-and-go food options, and lively rooftop decks.

At closing, Marriott will pay $355 million to acquire the brand and related intellectual property. Following closing, the citizenM portfolio will become part of Marriott's system, with hotels owned and leased by the seller subject to new long-term franchise agreements with Marriott. Stabilized fees for the open and under-construction portfolio are anticipated to be approximately $30 million annually. The seller may also receive earn-out payments up to $110 million, based on future brand growth over a multi-year timeframe.

The closing of the transaction is subject to customary conditions, including U.S. regulatory approval. Assuming closing in 2025, Marriott now expects full-year 2025 net rooms growth to approach 5 percent. Morgan Stanley & Co. International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.