Marriott to Acquire Citizen M in Strategic Move into Affordable Luxury

Hotel giant Marriott International has announced plans to acquire the Citizen M hotel chain as part of its expansion into the “affordable luxury” market. The deal, valued at $355 million, will see Marriott add Citizen M’s brand and intellectual property to its broad portfolio, which already includes prestigious names like Ritz-Carlton and Sheraton.

The acquisition will enable Marriott to strengthen its position in the lucrative lifestyle hotel segment, driven by a younger generation of travellers seeking authentic and locally immersive experiences. Citizen M, established in 2008 with its first property at Schiphol Airport in Amsterdam, currently operates 8,544 rooms across 36 hotels in cities throughout Europe, Asia, and the United States. It also has three additional properties, featuring 600 rooms, under construction and due to open next year.

According to Marriott, this move is an important step in capturing greater market share within the growing mid-tier luxury sector. President and Chief Executive Officer Anthony Capuano said, “We are delighted to bring Citizen M to our select-service brand portfolio. This expansion highlights our commitment to offering diverse and innovative options to our guests and loyalty members worldwide.”

The sellers of Citizen M include Dutch pension provider APG, its founder Rattan Chadha, and Singaporean wealth fund GIC. The terms of the agreement also include potential earn-out payments of up to $110 million for the sellers, contingent on the brand’s growth over the next several years. These payments will begin from the fourth year following the deal’s completion.

Rattan Chadha, founder and chairman of Citizen M, expressed enthusiasm about the partnership, saying, “This agreement marks a significant moment for Citizen M, and I am confident that the collaboration with Marriott will amplify the global reach and impact of our brand.”

Marriott, already the world’s largest hotel group with more than 9,300 properties under 30 brands, expects its total room capacity to grow by 5 per cent in 2025 as a result of the deal. With an anticipated rise in demand for international travel, particularly outside the United States and Canada, Marriott anticipates strong gains in revenue from the expanded portfolio.

The transaction remains subject to regulatory approval and other customary conditions, which if met, may see its completion within the year. This acquisition continues Marriott’s strategy of leveraging opportunities within high-growth segments, building on its $12.2 billion purchase of Starwood Hotels & Resorts a decade ago.