citizenM Partners with Marriott in $465 Million Deal
Deal News | May 01, 2025 | Paul Hastings
Paul Hastings LLP, a distinguished law firm, is advising citizenM on the sale of its brand and related intellectual property to Marriott International. This transaction involves a significant payment of $355 million by Marriott, with the potential for an additional $110 million in earn-out payments, contingent on the brand's future growth. The citizenM portfolio encompasses 36 hotels across 20 cities, with 8,544 rooms. Upon completion, the portfolio will be integrated into Marriott's system under long-term franchise agreements, subject to customary conditions including regulatory approval. The Paul Hastings team advising on this transaction includes partners and associates with expertise in Hospitality & Leisure, Real Estate, and more.
Sectors
- Hospitality
- Legal Services
Geography
- United States – Marriott International is headquartered in the United States, and the transaction involves U.S. regulatory approval.
- Europe – citizenM has a significant presence in major European cities, influencing the geographical scope of the acquisition.
- Asia – The citizenM portfolio includes locations in Asia, indicating the international reach of the transaction.
Industry
- Hospitality – The article discusses the acquisition of a hotel chain, citizenM, by Marriott International, a major player in the hospitality industry.
- Legal Services – Paul Hastings LLP, a law firm, is providing advisory services in the sale transaction, highlighting the role of legal support in mergers and acquisitions.
Financials
- 355 million – The initial payment Marriott will make to acquire citizenM's brand and intellectual property.
- 110 million – Potential earn-out payments based on the future growth of the citizenM brand.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| citizenM | Target Company | Company | A hotel brand offering select-service accommodations with 36 hotels across key cities. |
| Marriott International | Bidding Company (Buyer) | Company | A leading global hospitality company acquiring the citizenM brand. |
| Paul Hastings LLP | Legal Advisor | Company | A prestigious law firm advising citizenM on the transaction. |