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Back in April, I wrote about Marriott International planning to acquire the lifestyle hotel brand known as citizenM. The hotelier’s global portfolio currently has 37 properties across more than 20 cities spanning the United States, Europe, and Asia Pacific. This represents 8,789 rooms. Today, that acquisition was completed.
Under the terms of the acquisition, Marriott paid $355 million to acquire the brand and related intellectual property. The citizenM portfolio will become part of Marriott’s system later this year (including the Marriott Bonvoy® loyalty program). The hotels that are owned and leased by the seller will be subject to new long-term franchise agreements with Marriott. Stabilized fees for the open and under construction pipeline portfolio are anticipated to be around $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 timeframe.
The citizenM brand was founded in 2008 and it caters to a growing demographic of value-conscious travelers looking for features like smart in-room design, indoor and outdoor common spaces, comfortably appointed common areas that serve as collaborative workspaces, creative meeting rooms, grab-and-go food and beverage options, and rooftop decks.
I’ve heard of citizenM and seen some of its properties. The Netherlands-based, global hotel chain opened its first location at Amsterdam Airport Schiphol (AMS) in 2008. Glasgow came in 2010, followed by London in 2012. In the United States, citizenM operates hotels in Austin, Boston, Chicago, Los Angeles, Miami, New York, San Francisco, Seattle, and Washington DC.
Anthony Capuano, President and CEO of Marriott International, said:
As travelers continue to seek innovative lodging offerings that blend technology with genuine, people-first hospitality, the citizenM brand is the perfect addition to our portfolio. Marriott has proven success in growing select-service lifestyle offerings, including our AC, Moxy, and Aloft brands, and we look forward to accelerating citizenM’s global reach with our guests and Marriott Bonvoy members around the world.”
Anthony’s Take: Marriott just keeps growing. I’m excited to earn points and receive benefits when staying at these hotels once they are integrated into the Marriott Bonvoy® program.
(Image Credits: Marriott and citizenM.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
