The world’s largest hotel operator will be buying citizenM’s 36 hotels, thereby expanding its select-service segment. If the deal goes through and closes in 2025, Marriott expects full year 2025 net rooms growth to approach 5%.
Founded in 2008, citizenM has been known since its beginnings as a budget-conscious yet aesthetically pleasing and tech-savvy hotel option. Most of the chain’s rooms are on the smaller side, measuring around 14 square meters, and are built with using modular or pre-fabricated construction.
citizenM currently operates a total of 8,544 rooms and 600 rooms are set to open by mid-2026, most of which are located in European capitals, though they also have hotels in New York City, Austin, and Miami. The hotels are known for their focus on art and design with features like indoor and outdoor common spaces featuring immersive artwork, comfortably appointed living rooms that serve as collaborative workspaces, creative meeting rooms, grab-and-go food and beverage options, and lively rooftop decks.
“I am excited about citizenM’s future with Marriott International. citizenM was created for frequent travellers, 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 maximise returns,” said Lennert de Jong, CEO of citizenM.
Acquisition details
In order for the $355 million acquisition of the brand and related intellectual property to go through, it now needs to be approved by U.S. regulators. If the purchase succeeds, citizenM will join Marriott’s long-term franchise system. The fees for the hotels that are open and those that are under construction are anticipated to amount to approximately $30 million annually.
Moreover, citizenM may also receive earn-out payments up to $110 million. Those would be based on the future growth of the brand over a specified, multi-year timeframe and would not begin until the fourth year following closing.
“As we continue to drive best-in-class experiences for travellers, 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,” said Anthony Capuano, President and CEO of Marriott International.
According to Marriott, if the deal goes through in 2025, the acquisition will bring its full-year room growth to 5%. This number would satisfy the yearly outlook of the company as issued in February, when Marriott stated to be aiming for a “4% to 5%” growth in net rooms this year. In 2024, net rooms grew by 6.8% year-over-year.
