Marriott International will buy lifestyle brand CitizenM for $355 million, adding 36 hotels to its global portfolio.
The CitizenM brand operates in 20 major cities across the U.S., Europe and Asia-Pacific with 8,544 rooms, according to a news release. It has three hotels with more than 600 rooms under construction expected to open by mid-2026.
The Netherlands-based CitizenM started in 2008, and along with being a brand, it is a hotel developer and operator. It builds hotels using prefabricated rooms that are assembled at its factory in Europe and later shipped to construction sites.
The brand “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 featuring 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,” according to the news release.
Assuming the deal closes in 2025, Marriott expects its full-year 2025 net rooms growth will approach 5%.
The major shareholders of CitizenM are Dutch pension investment company APG and Singapore sovereign wealth fund GIC.
The pending acquisition of CitizenM builds on Marriott’s commitment to provide more options for its Bonvoy loyalty program members, Marriott president and CEO Tony Capuano said in the release.
“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,” he said.
When the deal closes, Marriott will pay $355 million for the brand and its related intellectual property. Afterward, the portfolio will become part of Marriott’s system while the hotels owned and leased by the seller will be subject to new long-term franchise agreements.
Approximately $30 million is expected annually in stabilized fees for the open and under construction pipeline. The seller will also receive earn-out payments up to $110 million based on future growth of the brand over a specific, multi-year timeframe. Those payments would not begin until the fourth year after the deal closes.
The Financial Times reported in March 2024 through anonymous sources that owners of the CitizenM brand were exploring several options, including the full sale of the company. They had internally valued the company at €4 billion ($4.5 billion).
“I envisage this relationship will greatly enhance CitizenM's global reach and brand impact,” CitizenM founder and executive chairman Rattan Chadha said in the release. “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.”
Marriott has grown its brand portfolio in recent years through a mix of organic and bolt-on acquisitions. Most recently, it acquired Postcard Cabins and formed a partnership with Trainborn in December 2024. It moved into the midscale space through acquiring the City Express brand portfolio in May 2023 as well as launching the StudioRes extended-stay brand. It also launched the midscale Four Points Express by Sheraton in late 2023 for Europe, the Middle East and Africa.
During an on-stage interview at this year’s International Hospitality Investment Forum in Berlin, Capuano said he’s often asked whether there will be another transaction the scale of Marriott’s acquisition of Starwood Hotels & Resorts. While he would never say never, he explained the current climate and condition of the debt markets would make such a deal challenging.
“I do expect to see a pretty steady cadence of what we internally term bolt-on acquisitions,” he said. “Some of that is our desire, and our peers’ desire, to fill in gaps, either geographic gaps or gaps in our brand architecture.”
For smaller chains, many of them are reaching an inflection point that requires them to ask themselves whether they have the resources and appetite to invest in loyalty and technology, he said.
“If the answer is yes, off they go, and they often grow and flourish,” he said. “If the answer to either of those questions is maybe not, that sometimes leads to exploration of tie-ups with some of the larger global platforms.”