Marriott International Expands Portfolio with Acquisition of citizenM Brand

Marriott International Expands Portfolio with Acquisition of citizenM

In a significant move aimed at enhancing its diverse offerings, Marriott International has announced an agreement to acquire the lifestyle hotel brand citizenM. This strategic acquisition will allow Marriott to amplify its global presence in the select-service segment, which caters to travelers seeking unique and tech-forward hospitality experiences.

Founded in 2008, citizenM has become renowned for its blend of affordability and cutting-edge design, primarily appealing to tech-savvy travelers. With a current portfolio of 36 properties totaling over 8,500 rooms spread across key cities such as New York, London, Paris, and Rome, the acquisition places Marriott in a prime position to engage a growing demographic of budget-conscious guests demanding quality accommodations without compromising on modern conveniences.

The terms of the deal indicate that Marriott will pay approximately $355 million for the citizenM brand and associated intellectual properties. Marriott's plans do not stop at just the acquisition—but they anticipate the opening of three new citizenM hotels in the pipeline, totaling around 600 rooms, expected to be completed by mid-2026. Additionally, this expansion is projected to contribute about $30 million annually in stabilized fees from the properties under Marriott’s management.

Anthony Capuano, the President and CEO of Marriott International, expressed his enthusiasm for the acquisition, highlighting it as a demonstration of Marriott’s commitment to enhance the travel experiences for guests and members of the Marriott Bonvoy loyalty program. The integration of citizenM within Marriott’s structure is expected to leverage the company's robust development ecosystem, industry-leading cost structure, and its acclaimed loyalty platform.

Rattan Chadha, the founder and chairman of citizenM, echoed this sentiment, expressing optimism about the future. He believes that Marriott shares citizenM's core values and that their collaboration will significantly expand the brand's global reach. Both brands will maintain their distinct characters while working together towards mutual growth.

Lennert de Jong, the CEO of citizenM, reiterated the excitement surrounding this new phase and the inclusion of citizenM within Marriott’s expansive network. He stated that citizenM was designed with frequent travelers in mind, and with Marriott’s distribution capabilities, the brand can now welcome even more modern guests to its properties. Furthermore, existing operational models will continue, with citizenM retaining ownership of its properties while benefiting from Marriott's development strength to explore possibilities for future expansions in new locations worldwide.

The transaction’s closure is subject to standard regulatory approvals, but Marriott forecasts a net growth of around 5% in room numbers for the year 2025, pending the successful completion of this acquisition. This growth is anticipated as a direct result of the addition of citizenM’s properties to Marriott's global portfolio, marking a pivotal moment in the brand's history.

As Marriott ventures into this new journey with citizenM, the hospitality industry watches closely to see how this blend of values and service models will redefine the future hospitality experience for travelers around the globe.