Marriott International Set to Welcome citizenM to Its Portfolio - A Win for Marriott Bonvoy Members

In exciting news for the global hospitality landscape, Marriott International (Nasdaq: MAR) today announced a definitive agreement to acquire the innovative lifestyle hotel brand citizenM. This strategic move is poised to significantly boost Marriott's expansion within the popular select-service and lifestyle lodging segments, offering even more diverse and appealing choices for travelers and, notably, presenting several exciting benefits for Marriott Bonvoy members worldwide.

citizenM, established in 2008, has carved a unique niche with its focus on genuine service, cutting-edge technology integration, efficient room design, and a strong emphasis on art and design. Catering to the modern, value-conscious traveler, citizenM's hotels feature smart in-room technology, inviting common areas adorned with striking artwork and local touches, comfortable living rooms designed for both relaxation and collaboration, creative meeting spaces, convenient grab-and-go dining options, and vibrant rooftop decks in many locations.

The acquisition will bring citizenM's impressive global footprint of 36 operational hotels, encompassing 8,544 rooms across more than 20 key cities in the U.S., Europe, and Asia Pacific – including major hubs like New York, London, Paris, and Rome – into the Marriott family. Furthermore, citizenM's current development pipeline includes three hotels under construction, expected to add over 600 rooms by mid-2026, signaling significant potential for future growth under Marriott's global development network over the coming decade.

For Marriott Bonvoy members, this acquisition could unlock a wealth of new opportunities and advantages:

* Expanded Choice of Destinations: With citizenM's presence in key urban centers across the U.S., Europe, and Asia Pacific, Bonvoy members will gain access to a new portfolio of strategically located hotels in desirable destinations where they may not have had as many Marriott options previously. Imagine earning or redeeming points at a stylish citizenM in the heart of Paris or enjoying elite benefits at their New York City location.

* Unique Stay Experiences: citizenM's distinct lifestyle brand, characterized by its modern design, tech-forward approach, and vibrant social spaces, offers a different kind of hotel experience that will complement Marriott's existing diverse portfolio. This provides Bonvoy members with more variety when choosing accommodations based on their travel style and preferences.

* Earning and Redeeming Points: Once the acquisition is finalized and citizenM hotels are integrated into Marriott's system, Bonvoy members will likely be able to earn and redeem their points for stays at these properties, further enhancing the value and flexibility of the loyalty program.

* Elite Benefits Recognition: As part of the Marriott family, it's highly probable that Bonvoy elite members will be able to enjoy certain benefits at citizenM hotels, such as potential room upgrades (where applicable given the room design), welcome gifts, or other perks associated with their status. This can add significant value to their stays.

* Potential for New Program Features: The integration of a unique brand like citizenM could potentially lead to new and innovative features within the Marriott Bonvoy program, catering to a broader range of traveler preferences and needs.

Anthony Capuano, President and CEO of Marriott International, expressed his enthusiasm, stating, "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. 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. 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.”

Under the terms of the agreement, Marriott will acquire the citizenM brand and related intellectual property for $355 million upon closing. Following the transaction, citizenM's existing portfolio will become part of Marriott's system through new long-term franchise agreements, while the current owner will retain ownership and leasehold interests in the properties. Marriott anticipates approximately $30 million in stabilized fees annually from the existing and under-construction portfolio. The agreement also includes potential earn-out payments of up to $110 million for the seller, contingent on the future growth of the citizenM brand over a specified multi-year period, with these payments commencing no earlier than the fourth year post-closing.

Rattan Chadha, Founder and Chairman of citizenM, shared his positive outlook, saying, "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. 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.”

Lennert de Jong, CEO of citizenM, echoed this sentiment, stating, "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 new modern guests. 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.”

The completion of the acquisition is subject to standard closing conditions, including necessary U.S. regulatory approvals. Assuming the transaction closes in 2025, Marriott now anticipates its full-year 2025 net rooms growth to approach 5 percent, highlighting the significant impact of this acquisition on the company's expansion strategy. Marriott Bonvoy members can eagerly anticipate the integration of citizenM into the program, promising a wider array of exciting and stylish accommodation options in key global cities.