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CitizenM Miami South Beach Hotel- Image Credit CitizenM
- Marriott International has announced its plans to acquire the lifestyle hotel brand CitizenM.
- The acquisition will add 36 hotels across more than 20 cities worldwide to Marriott’s portfolio.
Marriott International has confirmed its intention to acquire the CitizenM brand. This move is anticipated to bolster Marriott’s global expansion of select-service and lifestyle lodging offerings, aligning with its strategy to diversify its portfolio and provide more options for its guests.
CitizenM, a unique brand in the select-service segment, currently comprises 36 hotels, with 8,544 rooms, in more than 20 U.S., European, and Asia Pacific cities, including major cities such as New York, London, Paris, and Rome.
The brand’s pipeline includes three hotels under construction, adding over 600 rooms, which are expected to open by mid-2026. Furthermore, the acquisition is expected to significantly expand Marriott’s reach across its global regions over the next decade.
Founded in 2008, CitizenM is known for its authentic service, tech-savvy experiences, efficient use of space, and emphasis on art and design. It caters to a growing demographic of value-conscious travelers looking for technology-driven accommodations, smart in-room design, and common spaces featuring immersive artwork and local artifacts. These comfortable living rooms double as collaborative workspaces, creative meeting rooms, quick-service food and beverage options, and lively rooftop decks.
Upon completing the transaction, Marriott International will pay $355 million to acquire the brand and related intellectual property. Post-acquisition, the CitizenM portfolio will integrate into Marriott’s system, with the hotels owned and leased by the seller under new long-term franchise agreements with Marriott. The stabilized fees for the open and under-construction pipeline portfolio are expected to be approximately $30 million annually.
Additionally, the seller may receive earn-out payments up to $110 million based on the brand’s future growth over a specified multi-year timeframe. These payments would not commence until the fourth year following the closing.
The transaction, subject to customary conditions, including U.S. regulatory approval, is expected to close in 2025. Following the acquisition, Marriott projects its full-year net rooms growth in 2025 to approach 5%.
Morgan Stanley & Co. International plc and Eastdil Secured have advised the seller in this transaction.
