Alongside hotels in Europe and the USA, including in key cities like London, Paris, Rome, Zurich, Geneva, Amsterdam, New York, Los Angeles, Chicago and San Francisco, citzenM has three hotels in development.
In Asia Pacific, the brand has a property in Kuala Lumpur and is targeting opportunities in Sydney and Melbourne as well as Hong Kong, Singapore, Osaka and Seoul.
In total, citizenM has over 8,500 operational rooms and more than 600 in the pipeline.
“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,” said Marriott International’s 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 is expecting to close the deal this year and will pay an initial US$355 million for the brand. Following the acquisition, long-term franchise agreements will bring the citizenM brand under Marriott’s umbrella, with franchise fees to sit at around $30 million a year.
The seller may further receive up to $110 million based on the growth of the citizenM brand over a fixed time period, with these earn-out payments beginning four years after the deal is completed.
“citizenM was created for frequent travellers and Marriott’s distribution capabilities will allow us to welcome new modern guests,” said citizenM CEO, Lennert de Jong.
“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.
“We will continue to own our real estate and operate all our hotels. This relationship will allow us to work together to maximize returns.”
