Marriott International has announced plans to acquire lifestyle hotel brand CitizenM for $355 million, marking a significant expansion into urban markets. CitizenM, known for its compact, tech-savvy rooms and playful decor, operates 36 hotels across 20+ cities in the U.S., Europe, and Asia Pacific. The deal, subject to regulatory approval, is expected to close later this year.
The acquisition includes upfront payment and potential earn-outs of up to $110 million based on CitizenM’s future growth metrics. CitizenM’s 8,544 rooms, along with 600 additional rooms under development, will join Marriott’s portfolio, bolstering its select-service segment. Marriott anticipates generating $30 million in annual fees from CitizenM’s existing portfolio and pipeline.
Although Marriott pursues an asset-light strategy, CitizenM owns or leases most of its properties, which will remain under long-term franchise agreements. CitizenM’s innovative practices, such as modular construction and non-points-based loyalty programs, may integrate into Marriott’s system, including its Bonvoy rewards program.
This acquisition aims to accelerate Marriott’s net room growth toward 5% in 2025.
source:Skift
