Marriott International has agreed to acquire Netherlands-based
upscale select-service hotel chain CitizenM for $355 million, the hotel company
announced Monday.
Founded in 2008 by entrepreneur Rattan Chadha, CitizenM has
36 open properties in Europe, the Asia-Pacific region and the United States,
including hotels in New York, London, Paris and Rome, according to Marriott,
with three more currently under construction. Marriott said the deal offers
CitizenM "the prospect of significant additional growth across Marriott's
global regions over the next decade."
Marriott said the brand "caters to a growing
demographic of value-conscious travelers looking for technology-driven
accommodations."
CitizenM CEO Lennert de Jong in a statement said CitizenM
would "continue to own our real estate and operate all our hotels."
When complete, the properties would join Marriott's portfolio, according to the
company.
"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 president and CEO Anthony Capuano said in a statement.
The deal is subject to U.S. regulatory approval and other
"customary" closing conditions, according to Marriott, which noted
the seller could "receive earn-out payments up to $110 million that are
based on the future growth of the brand over a specified, multi-year timeframe."
Those payments would not begin until the fourth year following closing,
according to Marriott.