Marriott Bets $355M On Trendy CitizenM Hotels To Woo Modern Travelers

Marriott International Inc. (NASDAQ:MAR) announced plans on Monday to buy the lifestyle hotel brand CitizenM.

The acquisition is expected to help Marriott expand offerings for its guests and Marriott Bonvoy loyalty members across global markets. CitizenM has 36 hotels operating in over 20 cities worldwide, including in New York, London, Paris and Rome.

CitizenM also has three additional hotels under construction, slated for completion by mid-2026. Long-term expansion is planned across Marriott's global regions.

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Under the terms of the deal, Marriott will pay $355 million for CitizenM and its related intellectual property. The CitizenM properties currently owned and leased by the seller will shift to new long-term franchise agreements managed by Marriott.

“As we continue to drive best-in-class experiences for travelers, today’s announcement builds upon Marriott’s commitment to enhance options for guests and Marriott Bonvoy members,” said Marriott president and CEO, Anthony Capuano.

“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.”

Marriott held $400 million in cash and equivalents as of Dec. 31, 2024.

Future growth incentives could see the seller earn up to an additional $110 million, based on brand expansion achievements over a multi-year timeframe, starting in the fourth year after closing.

CitizenM, established in 2008, is known for its tech-driven hospitality, artistic design, and smart use of space, offering travelers modern rooms, and rooftop terraces at an affordable price.

Pending regulatory approvals, the acquisition is expected to close in 2025. Marriott projects that this move will help drive its net room growth to nearly 5% for the full year 2025.

Price Action: MAR shares traded higher by 1.75% at $240.34 at last check Monday.

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