Marriott International has announced it has reached an agreement to acquire the lifestyle brand citizenM, what it calls an "innovative offering in the select-service segment." The transaction is expected to accelerate Marriott’s global expansion of its select-service and lifestyle lodging offerings, as the company continues to focus on expanding its portfolio to provide even more options for guests and Marriott Bonvoy members.
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. The brand’s current pipeline includes three under-construction hotels totaling over 600 rooms that are anticipated to open by mid-2026, with the prospect of significant additional growth across Marriott’s global regions over the next decade.
The citizenM brand is known for its service, tech-savvy in-hotel experience, efficient use of space, and focus on art and design. The brand, founded in 2008, caters to a growing demographic of value-conscious travelers looking for technology-driven accommodations with features like smart in-room design, indoor and outdoor common spaces with immersive artwork and local artifacts, comfortably appointed living rooms that serve as collaborative workspaces, creative meeting rooms, grab-and-go food and beverage options and lively rooftop decks.
At closing of the transaction, Marriott will pay $355 million to acquire the brand and related intellectual property. 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.
The closing of the transaction is subject to various customary conditions, including U.S. regulatory approval. Assuming closing of the transaction in 2025, Marriott now expects full year 2025 net rooms growth to approach 5 percent.
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