“We are very excited about our agreement with Marriott and look forward to this pivotal next step for our future growth,” said Chadha, who also serves as citizenM’s chairman. “I envision this relationship will greatly enhance citizenM’s global reach and brand impact. Marriott shares our values and culture, and I am confident in their deep commitment to preserving our brand’s DNA moving forward.”
After the closing, the citizenM portfolio, including its intellectual property, will join Marriott’s system, with seller-owned and leased hotels entering new long-term franchise agreements, Marriott said in a statement.
Anthony Capuano, Marriott International’s president and CEO, said the announcement reinforces Marriott’s commitment to expanding options for guests and Bonvoy members.
“We are thrilled to add citizenM as a unique, differentiated offering to our select-service brand portfolio as we strengthen Marriott’s position in this valuable global segment,” he said. “Marriott has a proven track record of scaling acquired brands by leveraging our global development platform, efficient affiliation cost structure, and the strength of our award-winning Marriott Bonvoy loyalty program.”
The citizenM brand targets value-conscious travelers seeking features such as smart room design, common areas with artwork and local artifacts, collaborative living rooms, meeting spaces, grab-and-go F&B and rooftop decks.
“I am excited about citizenM’s future with Marriott International. CitizenM was created for frequent travelers, and Marriott’s distribution capabilities will allow us to welcome a new generation of modern guests,” said Lennert de Jong, citizenM’s CEO. “With the strength of Marriott’s development engine, we look forward to adding more citizenM properties in new destinations around the world. We will continue to own the real estate and operate all our hotels. This relationship will help us work together to maximize returns.”
Meanwhile, stabilized fees from the open and under-construction portfolio are expected to total about $30 million annually, the statement said. The seller may also receive up to $110 million in earn-out payments tied to brand growth over a multi-year period, beginning in the fourth year after closing.
The transaction is subject to customary conditions, including U.S. regulatory approval. If the transaction closes this year, Marriott expects full-year net rooms growth to approach 5 percent. Morgan Stanley & Co. International and Eastdil Secured served as financial advisors to the seller.
In September 2024, citizenM opened Boston Back Bay, a 15-story, 399-room tower and its largest property to date, marking the brand’s second hotel in the city.
