Marriott to Acquire CitizenM for $355 Million, Expanding Urban Lifestyle Offerings

Marriott International announced Monday that it has reached an agreement to purchase CitizenM, a lifestyle hotel brand known for its compact, tech-savvy rooms and playful, minimalist design, for $355 million. The move, according to a statement, will significantly expand Marriott’s footprint in major urban centers worldwide.

The acquisition will bring CitizenM’s portfolio of 36 hotels — located across over 20 cities in the United States, Europe, and the Asia-Pacific region — under Marriott’s management. According to the statement, the transaction is expected to close later this year, pending regulatory approval.

As part of the agreement, Marriott will make an upfront payment of $355 million for the brand and its associated intellectual property. Additionally, the deal includes the possibility of earn-out payments totaling up to $110 million, which would be contingent on future performance benchmarks. These supplementary payments would not commence until four years after the completion of the acquisition, per the statement.

Anthony Capuano, Chief Executive Officer of Marriott International, emphasized in a statement that integrating CitizenM into the Marriott portfolio will strengthen its position in the select-service hotel segment, which typically offers streamlined amenities compared to full-service properties. While Marriott has been steering its business model towards an asset-light strategy, CitizenM operates differently — owning and leasing nearly all its hotels. Under the deal terms, CitizenM’s properties will continue to be owned and leased by their current owners but will operate under new long-term franchise agreements.

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CitizenM currently oversees 8,544 hotel rooms, with three additional properties underway that are anticipated to contribute over 600 more rooms by mid-2026.

Marriott also expects the acquisition to support its goal of achieving nearly 5% net room growth in 2025, according to a statement. Earlier this year, the company projected a 4% to 5% increase in net rooms for the current year. While Marriott reported a 6.8% rise in net rooms year-over-year in 2024, the hospitality giant acknowledges that maintaining such growth becomes increasingly challenging as its global network continues to expand.

Source: SkiFT