Marriott to acquire smart hotel brand CitizenM for £266m
Marriott International will acquire hotel and lifestyle brand CitizenM for £266m as it looks to expand its select-service and lifestyle lodging offerings.
The brand’s current pipeline includes three under-construction hotels comprising over 600 rooms that are slated to open by mid-2026, with the potential for “significant additional growth” with Marriott over the next decade.
CitizenM is known for its value, smart tech and focus on art and design.
“I envisage this relationship will greatly enhance CitizenM’s global reach and brand impact,” Rattan Chadha, founder and chairman of CitizenM, said.
Lennert de Jong, CEO of CitizenM, said the firm “was created for frequent travellers, and Marriott’s distribution capabilities will allow us to welcome new modern guests.
“With the strength of Marriott’s development engine, we look forward to the prospect of many additional CitizenM properties in new destinations around the world.”
De Jong added that the chain will continue to own its real estate and operate all its hotels.
The hotels will be subject to new long-term franchise agreements with Marriott, although Marriott will own the brand and intellectual property.
The transaction, which was advised by Morgan Stanley & Co. International and Eastdil Secured, pushed Marriott’s full growth growth expectations to five per cent.
The company grew five per cent last year, with 4.1 percent growth in the US & Canada and 7.2 percent growth in international markets.
Anthony Capuano, president and CEO of Marriott International, said: “As we continue to drive best-in-class experiences for travellers, today’s announcement builds upon Marriott’s commitment to enhance options for guests and Marriott Bonvoy members.”
“Marriott has a proven track record of growing acquired brands significantly by leveraging our global development ecosystem, the benefits of our industry-leading affiliation cost structure, and the power of our award-winning Marriott Bonvoy loyalty platform,” he added.