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Marriott International announced today that it is acquiring the the lifestyle hotel brand citizenM. The hoteliers global portfolio currently has 36 properties across more than 20 cities spanning the United States, Europe, and Asia Pacific.
Under the terms of the acquisition, Marriott will pay $355 million to acquire the brand and related intellectual property. The citizenM portfolio will become part of Marriott’s system (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 acquisition is subject to various customary conditions, including US regulatory approval. If it closes in 2025, Marriott expects full year 2025 net rooms growth to approach 5%. Marriott has over 35 brands in its portfolio and citizenM brings it a a unique and innovative offering in the select-service segment.
Anthony Capuano, President and CEO of Marriott International, said:
As we continue to drive best-in-class experiences for travelers, today’s announcement builds upon Marriott’s commitment to enhance options for guests and Marriott Bonvoy® members. 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. 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.”
Rattan Chadha, Founder and Chairman of citizenM, added:
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 will greatly enhance citizenM’s global reach and brand impact. Marriott as an organization shares our values and culture, and I am confident in their deep commitment in continuing our brand’s DNA into the future.”
Lennert de Jong, CEO of citizenM, also commented:
I am excited about citizenM’s future with Marriott International. citizenM was created for frequent travelers, and Marriott’s distribution capabilities will allow us to welcome new modern guests. With the strength of Marriott’s development engine, we look forward to the prospect of many additional citizenM properties in new destinations around the world. We will continue to own our real estate and operate all our hotels. This relationship will allow us to work together to maximize returns.”
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 with 16 properties in total across the country.
Anthony’s Take: Marriott just keeps growing and needs to keep feeding the beast with acquisitions in order to maintain the level of growth to make it meaningful. I look forward to checking out a citizenM property and earning Marriott Bonvoy® points in the future.
(Image Credits: 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.
