Marriott has announced yet another hotel group acquisition, as it continues toward its goal of ensuring that every bed in the world is Marriott branded. 😉
In this post:
Marriott taking over lifestyle hotel brand citizenM
Marriott has reached an agreement to acquire citizenM, a lifestyle hotel brand in the select-service segment. At closing, Marriott will pay $355 million to acquire the brand and related intellectual property. The expectation is that citizenM properties will become part of Marriott’s system, with the hotels owned and leased by the seller, subject to long-term franchise agreements with Marriott. Stabilized fees for the current properties are expected to be around $30 million annually.
The citizenM brand consists of 36 open hotels, comprising 8,544 rooms, across more than 20 cities in the United States, Europe, and Asia Pacific. The brand’s current pipeline includes three under construction hotels, totaling over 600 rooms, that are anticipated to open by mid-2026. The goal is to grow the brand way beyond that, especially with the backing of Marriott.
For those not familiar with the citizenM brand, here’s how the concept is described:
The citizenM brand is known for its genuine service, tech-savvy in-hotel experience, highly efficient use of space, and focus on art and design. The brand, founded in 2008, caters to a growing demographic of value-conscious travelers looking for technology-driven accommodations with features like smart in-room design, indoor and outdoor common spaces featuring immersive artwork and local artifacts, comfortably appointed living rooms that serve as collaborative workspaces, creative meeting rooms, grab-and-go food and beverage options, and lively rooftop decks.
Here’s how Marriott CEO Anthony Capuano describes this deal:
“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.”
My take on Marriott’s citizenM acquisition
I’m not sure I have any terribly passionate take on this development. We know that Marriott is about quantity over quality. As Marriott’s CEO has jokingly said, “I worry they’re going to put a ‘net rooms growth’ figure on my tombstone.” And more seriously, he has also said “we want to capture as close to 100% of your travel wallet as possible.”
I know some people like the citizenM brand when it comes to select service properties. With citizenM joining Marriott’s portfolio, I imagine the impact will be as follows:
- It’ll be possible to earn some number of Marriott Bonvoy points and elite nights for stays here (though there’s very little consistency nowadays when it comes to how you’re rewarded at various brands, and Marriott’s newest brand doesn’t even offer elite nights)
- On average, citizenM rates will no doubt go up, given the distribution power of Marriott, plus the popularity of the loyalty program
- I wouldn’t expect Marriott’s acquisition of citizenM to be great in terms of innovation or guest experience at citizenM properties; as an independent player, the brand definitely had to try harder to win business
Bottom line
Marriott is acquiring the citizenM hotel brand, in order to grow its presence in the select-service segment. Many people like the citizenM brand, so this is a double edged sword. It’ll eventually be possible to earn and redeem points for stays at citizenM properties, though at the same time, I’d expect that being part of Marriott will drive up rates, and stifle innovation.
What do you make of Marriott taking over citizenM?
"highly efficient use of space"
They ain't kidding with that bed. Holy $#!%
I regularly stay at the Amsterdam properties. The acquisition is likely going to destroy the uniqueness of CitizenM with Marriott forcing far too much standardisation on it.
Like other commenters said, this sucks.
There are already so few independent brands that can be trusted, when Marriott or Hyatt move in, quality deteriorates, and prices increease.
If CitizenM is integrated into Bonvoy, it will be interesting to see at what participation level.
Based on the current Amazon Prime-style loyalty program, it doesn’t seem like property owners will want to provide, for example, breakfast. Do they even have a restaurant?
Reading between the lines of Marriott’s press release it seems like CitizenM owners will pay Marriott a flat fee as opposed to a more conventional percentage of revenue plus fees for assorted...
If CitizenM is integrated into Bonvoy, it will be interesting to see at what participation level.
Based on the current Amazon Prime-style loyalty program, it doesn’t seem like property owners will want to provide, for example, breakfast. Do they even have a restaurant?
Reading between the lines of Marriott’s press release it seems like CitizenM owners will pay Marriott a flat fee as opposed to a more conventional percentage of revenue plus fees for assorted services, etc.
I just don’t see what this acquisition gets Marriott. It already has Moxy and Aloft. I would be mad if I was one of the current Moxy or Aloft owners. Aloft is 20-years-old this year, 2025. It hasn’t been refreshed since its launch.
Presumably a key point is that it strengthens their European footprint which remains relatively small.
This sux. I've stayed several times in 2 of the 3 M hotels in London and enjoyed both, esp. the Southwark hotel which has a great bar. Small rooms are fine for a crash-pad when you should be out enjoying London anyway. The beds are very comfy.
Prices can only increase under Marriott :(
Hotel branding has become a big mess. Many brands don't really have any positive distinguishing features. It's another bubble waiting to be popped.
I didn't realize until I saw the picture that Citizen M has tight rooms like Moxy.
There is a market for that, I'm just not it.
CitizenMoxy wouldn't be the worst rename.
Too bad. I enjoy CitizenM, and have no reason to expect any positive outcomes from this takeover.
How will this be any different than AC, Moxy or Aloft?
Well for one, it looks like you can only access the bed from one side at a CitizenM property
Aren't some Moxy properties already like that?
I've stayed at one Moxy and it wasn't like that, but I couldn't tell you others aren't I. I've never stayed at an Aloft or AC that was like that. Heck, Aloft Cleveland airport actually had some very spacious rooms and a massive bathroom.
Regardless, that first comment was meant to be tongue-in-cheek, my apologies if it didn't come across that way.
"Well for one, it looks like you can only access the bed from one side at a CitizenM property"
I'm not sure that's ubiquitous, but that's all I've seen from photos and heard from friends who have stayed at M properties.
Bed is access from one side. Bathroom is also modular/plastic box in the middle of the room a bit like what you get on a cruise ship. Not unlike a motorhome/caravan in layout actually. It is functional, but sure ain't luxury.
@TravelinWilly
I think beds being across the whole room (which means they are generously sized) is ubiquitous.
CitizenM has a role - I have used the one at AMS happily several times.
But I regard the rooms as only suitable for one person.
Another big miss for Hyatt.
Hyatt only care about All Inclusive properties
I concur