From Yahoo Finance: 2025-04-29 05:32:00

Marriott International has agreed to acquire lifestyle brand citizenM for $355m, expanding its global presence in select-service and lifestyle lodging. CitizenM has 36 hotels with 8,544 rooms in key cities worldwide, offering smart accommodations and unique design elements. Marriott plans to leverage its development ecosystem and loyalty platform for growth.

The deal includes citizenM’s intellectual property and potential for further expansion with three hotels under construction. Marriott anticipates stabilised fees of around $30m per year from the open and pipeline portfolio. The seller could receive earn-out payments of up to $110m based on brand growth post-closing. Marriott expects a net rooms growth rate of nearly 5% for 2025.

CitizenM CEO looks forward to additional properties in new destinations with Marriott’s development engine. The existing citizenM hotels will enter into new long-term franchise agreements with Marriott, maintaining ownership of real estate. The completion of the deal is subject to regulatory approval in the US, with the transaction expected to close in 2025.

Marriott’s acquisition of citizenM follows a previous expansion move in October 2022, acquiring the City Express brand portfolio for $100m. Financial advisory services for the seller were provided by Morgan Stanley & Co International and Eastdil Secured. The deal aims to strengthen Marriott’s foothold in the valuable lifestyle lodging sector, offering more options to guests and Marriott Bonvoy members worldwide.



Read more at Yahoo Finance: Marriott expands portfolio with $355m CitizenM lifestyle brand deal