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Marriott to buy CitizenM hotels in £266m deal
The deal will expand Marriott’s lifestyle offering and could see the launch of more hotels worldwide
Marriott International is to buy the lifestyle hotel brand CitizenM in a $355m (£266m) deal.
The move will see Marriott, which is the world’s largest hotel operator with over 9,300 properties, add CitizenM’s 36 hotels and 8,544 rooms to its system.
CitizenM was founded in 2008 and offers “affordable luxury” to guests, with compact, technology-enabled rooms, conceptual artwork and rooftop bars.
Its portfolio spans more than 20 cities, including New York, Paris and Rome. In the UK, it has one hotel in Glasgow and five in London, where rooms are mostly priced under £200 a night.
Three Citizen M hotels with over 600 rooms are currently under construction and are expected to open by mid-2026.
The deal, which was announced today, is expected to complete in 2025.
Rattan Chadha, founder and chairman of CitizenM, said the sale could see the launch of “many additional CitizenM properties in new destinations around the world.”
“We are very excited about our agreement with Marriott and look forward to this pivotal next step for our future growth. I envisage this relationship will greatly enhance CitizenM’s global reach and brand impact,” he added.
After completion of the deal, CitizenM will continue to operate its hotels, which will be leased under new long-term franchise agreements with Marriott.
Marriott said it now expected full-year net room growth of nearly 5% if the sale goes through in 2025.
“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,” said Anthony Capuano, president and chief executive of Marriott International.
“We are thrilled to add CitizenM as a unique, differentiated offering to our select-service brand portfolio as we continue to strengthen Marriott’s foothold in this valuable market segment around the world."
The deal will see $355m (£266m) paid upfront while CitizenM may receive potential earn-out payments of up to $110m (£82.4m) based on the future growth of the brand. These payments will not begin until the fourth year after the sale.
Marriott is the latest hotel giant looking to capitalise on the boom in demand for lifestyle brands by snapping up a smaller player. IHG Hotels & Resorts acquired Ruby Hotels for £92m in February, Hilton bought the NoMad and Graduate Hotels groups last year and Hyatt bought Standard International for around £260m in 2024.
The closing of the CitizenM deal is subject to conditions, including US regulatory approval.
Morgan Stanley & Co International plc and Eastdil Secured acted as financial advisors to the seller in this transaction.
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