Marriott Buys Lifestyle brand citizenM and sees net room growth boosted

Key Takeaways

• Marriott International will pay $355 million for Netherlands-based hotel chain citizenM, which is expected to help lift Marriott's 2025 net rooms growth.
• Marriott now has 36 hotels open in more than 20 different cities around the globe.
• The company stated that if the deal closes this year it expects a net room growth of around 5% in 2025, compared to their previous outlook which was 4% to 5%.

Marriott International (MAR), the hotel operator, increased its growth forecast for 2025 net rooms after purchasing Netherlands-based citizenM hotel chain for $355m.

The company said the acquisition "is expected to accelerate Marriott's global expansion of its select-service and lifestyle lodging offerings, as the company continues to focus on expanding its portfolio to provide even more exciting options for guests and Marriott Bonvoy members around the world." The company noted that citizenM operated 36 open hotels, with 8,544 room, in more than twenty cities in the U.S.A. Europe, and Asia Pacific regions. 

The company explained that, assuming the deal closes in this year, “Marriott expects net room growth for 2025 to be around 5 percent.” Previously, the company expected net rooms to grow 4% to 5%.

As part of this agreement, citizenM becomes part of Marriott. The hotels owned and leased will be subject to long-term franchise contracts. In addition, citizenM could receive up to $110 million "on the future growth of the brand over a specified, multi-year timeframe."

CEO Anthony Capuano called citizenM "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."

Even with today's nearly 2% gains, shares of Marriott International remain down about 14% so far this year.