citizenM Sells Brand and IP to Marriott for $355 Million
Deal News | May 01, 2025 | Paul Hastings
Paul Hastings LLP is advising citizenM, a unique hotel company in the select-service segment, on the sale of its brand and intellectual property to Marriott International for $355 million. The citizenM portfolio includes 36 hotels across 20 cities worldwide. Upon closure, Marriott will integrate citizenM's assets into its system under new franchise agreements and may provide up to an additional $110 million in earn-out payments contingent on brand growth. This transaction, led by Paul Hastings's Hospitality & Leisure partner Rick S. Kirkbride, involves U.S. regulatory approval and other conditions.
Sectors
- Hospitality
- Legal Services
Geography
- United States – Marriott International is based in the United States, and part of the transaction requires U.S. regulatory approval.
- Europe – citizenM's hotel portfolio includes major European cities such as London and Paris.
- Asia – The citizenM portfolio also extends to cities in Asia, emphasizing its global reach.
Industry
- Hospitality – The transaction involves citizenM, a hotel company, and Marriott International, a large hospitality corporation, highlighting significant activity in this industry.
- Legal Services – Paul Hastings LLP, a legal advisory firm, is playing a crucial role in advising citizenM in this transaction.
Financials
- $355 million – The sale price for citizenM's brand and related intellectual property to Marriott International.
- $110 million – Potential additional earn-out payments based on future brand growth.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Paul Hastings LLP | Legal Advisor | Company | Advising citizenM on its sale to Marriott International. |
| citizenM | Target Company | Company | A unique and innovative hotel company in the select-service segment. |
| Marriott International | Bidding Company | Company | A leading global hospitality company acquiring citizenM's brand and IP. |