Marriott to acquire citizenM for $355M

BETHESDA, Maryland – Marriott International has reached an agreement to acquire the lifestyle select-service brand citizenM for $355 million.

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. 

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.

Assuming closing of the transaction in 2025, Marriott now expects full year 2025 net rooms growth to approach 5%.

The brand with properties in New York, London, Paris and more has 600 rooms under construction that are anticipated to open by mid-2026, with Marriott stating that prospects exist for significant global growth over the next decade.

The brand, founded in 2008, has technology-driven accommodations with features like smart in-room design, indoor and outdoor common spaces featuring immersive artwork and local artifacts, public space that serve as collaborative workspaces, meeting rooms, grab-and-go food and beverage options, and rooftop decks.

“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,” said Marriott CEO Anthony Capuano. “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.”

Morgan Stanley & Co. International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.