Marriott to buy popular hotel chain in $355M deal

The hotel CEO called the European chain a “unique, differentiated offering.”

Apr 28, 2025 - 21:42

Marriott to buy popular hotel chain in $355M deal

Founded in 1927 by husband-and-wife members of the Church of Latter Day Saints (that is why visitors to any property will always find both a Bible and a Book of Mormon in one of the drawers by the bed), the Marriott (MAR) hotel chain has, over the ensuing century, grown into one of the largest and most-recognized in the world.

At the end of 2024, it owned 9,361 properties in 144 countries around the world. This adds up to an empire of over 1.4 million hotel rooms that continues to expand.

In 2024, Marriott acquired outdoor lodging company Postcard Cabins and struck a licensing partnership with short-term rental platform Sonder.

On April 27, Marriott unveiled another major acquisition: it will be purchasing Dutch hotel chain CitizenM for $355 million.

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Marriott announces major deal, boasts of ‘differentiated offering’

Operating primarily out of European capitals like Amsterdam, Paris and London, CitizenM currently owns 36 hotels in 20 cities. New York City also has a prominent CitizenM property in the Hell’s Kitchen neighborhood, which is known for its bars and nightlife.

In 2024, CitizenM completed a major U.S. expansion with new hotels opening in Austin and Miami, while additional CitizenM hotels in Dublin and London are slated to open in 2026.

With the average room costing below the $200 range, CitizenM has found a market among budget-conscious travelers while still offering what Marriott classifies as a “focus on art and design.”

In 2022, the chain also launched membership program MyCitizenM+ in which one can pay a monthly fee to get 15% off stays as well as perks such as late checkout, food and drink discounts, and access to sales at different properties.

"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," Marriott International CEO and President Anthony Capuano said in a press statement. "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 $355 million acquisition still needs to be approved by U.S. regulators. If it is permitted to go forward, CitizenM will join Marriott's long-term franchise system.

CitizenM hopes partnership will expand ‘reach and brand impact’

Marriott anticipates spending $30 million per year to take on Citizen M’s current construction pipeline as well as receiving $110 million in earn-out payments from CitizenM based on future success of the brand. As part of the deal, these would be slated to start four years after closing.

Marriott says that the acquisition will bring its full-year room growth to 5%, while hedge funds Morgan Stanley & Co. International and Eastdil Secured are the financial advisors representing CitizenM in the transaction.

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"I envisage this relationship will greatly enhance citizenM's global reach and brand impact,” CitizenM founder and chairman Rattan Chadha said in a statement. “Marriott as an organization shares our values and culture, and I am confident in their deep commitment in continuing our brand's DNA into the future."