Marriott International is scooping up yet another brand, acquiring global hotel chain citizenM for $355M.
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Under the deal, the properties will continue to be owned and leased by citizenM but subject to new long-term franchise agreements with Marriott. With the acquisition of the brand, which is expected to close this year, Marriott predicts full-year 2025 net room growth to approach 5%, according to an announcement by the company Monday.
Marriott anticipated fees from the portfolio to be approximately $30M annually. Depending on citizenM’s growth, the company may receive up to $110M in earnout payments. Those payments wouldn't begin until four years after closing.
CitizenM’s global portfolio consists of 36 hotels totaling over 8,500 rooms in more than 20 cities. Additionally, three hotels are under construction, totaling approximately 600 rooms anticipated to open by mid-2026.
Meanwhile, Marriott has more than 9,300 properties across more than 30 brands in 144 countries and territories.
Morgan Stanley and Eastdil Secured advised on the transaction.
The pension funds that own citizenM began exploring options for the business, including a possible sale for as much as $4.3B, last year. In 2019, Singaporean sovereign wealth fund GIC bought a 25% stake in the chain, which valued the company at $2.25B.
CitizenM is known for its compact hotel rooms but large communal areas, including lobbies and bars. The firm owns stakes in and co-develops its hotels.
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