Marriott International Acquires Innovator citizenM to Expand Lifestyle Offerings

Marriott International, headquartered in Bethesda, Maryland, announced its agreement to acquire the lifestyle brand citizenM, a distinctive player in the select-service segment. This strategic acquisition aims to bolster Marriott's global expansion in select-service and lifestyle lodgings, offering more choices to its global clientele and loyal Marriott Bonvoy members. Currently, citizenM operates 36 hotels with 8,544 rooms across 20 cities in the U.S., Europe, and the Asia-Pacific region, including major cities such as New York, London, and Paris. Founded in 2008, citizenM is recognized for its tech-oriented hotel experience, efficient use of space, and art and design emphasis. The acquisition deal, valued at $355 million, will transition citizenM's portfolio into the Marriott system under new long-term franchise agreements. Additionally, the seller may receive up to $110 million in earn-out payments contingent on future brand growth. This acquisition aligns with Marriott's commitment to enhance guest experiences and grows from its proven track record with acquired brands, offering Marriott's extensive development ecosystem and cost advantages. This transaction is conditioned upon routine regulatory approvals, with Marriott predicting an annual net room growth nearing 5% post-acquisition. Financial advisory for the seller was provided by Morgan Stanley & Co. International plc and Eastdil Secured. With the anticipated 2025 completion, Marriott plans to leverage its scale and distribution capabilities to expand citizenM’s reach and retain ownership of its properties.