citizenM Set to Join Marriott International in $465 Million Deal
Deal News | May 01, 2025 | Paul Hasting
Paul Hastings LLP is overseeing the legal advisement for citizenM, a modern hotel brand recognized for its innovative approach to select-service accommodations, in its forthcoming sale to Marriott International. The transaction encompasses the sale of citizenM's brand and associated intellectual property for an initial payment of $355 million, with the potential for up to an additional $110 million contingent upon post-closing growth benchmarks. citizenM's expansive portfolio includes 36 operational hotels strategically located in major cities across the United States, Europe, and Asia. This acquisition will transition citizenM hotels into Marriott’s system, maintaining citizenM's ownership and leasing agreements under new long-term franchise contracts with Marriott. Led by Hospitality & Leisure partner Rick S. Kirkbride, the Paul Hastings team is grounded in real estate and business expertise, engaging key partners and associates to ensure compliance with regulatory requirements. This deal exemplifies Marriott's strategy of bolstering its select-service offerings through strategic brand acquisitions.
Sectors
- Hospitality
- Legal Services
Geography
- United States – Both citizenM and Marriott International operate extensively in the United States, and the transaction involves regulatory approval from U.S. authorities.
- Europe – citizenM has a significant presence in European cities such as London, Paris, and Rome, making the geography relevant to the transaction.
- Asia – citizenM also maintains operations in Asian locations, extending the geographical impact of the transaction.
Industry
- Hospitality – The article focuses on a transaction involving citizenM, a hotel brand, and Marriott International, a major player in the hospitality industry.
- Legal Services – Paul Hastings LLP is providing legal advisory services for the transaction, which is an essential component in the successful execution of M&A activities.
Financials
- $355 million – The initial payment made by Marriott International to acquire citizenM's brand and intellectual property.
- $110 million – Potential additional earn-out payment contingent upon future growth of the citizenM brand post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| citizenM | Target Company | Company | A hotel company offering modern and innovative accommodations across the United States, Europe, and Asia. |
| Marriott International | Bidding Company | Company | One of the world's leading hotel operators, acquiring the citizenM brand and intellectual property. |
| Paul Hastings LLP | Legal Advisor | Company | A global law firm providing legal services and strategic advisory for citizenM in the sale to Marriott International. |