Latest news with #RattanChadha
Forbes
02-05-2025
- Business
- Forbes
Lifestyle Brand CitizenM Acquired By Marriott International For $355 Million
Marriott International is on a buying spree, and it's changing the way we think about the hotel giant. With more than 9,300 properties and 1.7 million rooms worldwide, Marriott is already the largest hotel company in the world with a portfolio of 30 + brands that range from ultra-luxury to more budget friendly. For Marriott Bonvoy members, this growing portfolio means a lot more than just new places to stay—it means more ways to earn and redeem points, more destinations that fit different budgets and travel styles, and more value overall. CitizenM Marriott's latest move - just announced this week - is its $355 million acquisition of CitizenM, the Dutch hotel brand known for turning tiny rooms (under 200 square feet) into chic, tech-savvy spaces, and lobbies into buzzing social hubs for work and play. A Gen Z traveler's dream, CitizenM's properties feature mood lighting in its rooms (which you control by using your phone) and attractive rooftop bars - all at an affordable price tag of between $100 and $250 per night depending on the the location and time of booking. CitizenM CitizenM was founded in 2008 with a single hotel at Amsterdam's Schiphol Airport and has since grown to 36 hotels and 8,544 rooms across more than 20 global cities. With the new expansion to the U.S., the brand isn't slowing down. Marriott's backing only adds confidence that there is even more demand in this space. 'We built CitizenM for a new generation of travelers who value design, efficiency, and a good vibe over traditional luxury,' said founder Rattan Chadha. 'Now, with Marriott, we can grow faster and smarter—without losing who we are.' Marriott CEO Anthony Capuano also expressed his excitement about the acquisition, saying, 'CitizenM's innovative approach to hospitality fits perfectly with Marriott's strategy to provide guests with diverse, high-quality experiences. We're thrilled to welcome CitizenM into the Marriott family and expand our offerings for travelers who are looking for something fresh and modern.' CitizenM But CitizenM isn't the only brand Marriott is bringing on board. In the past few years, the company has made several other acquisitions to diversify its offerings: With its most recent transaction, Marriott now expects full year 2025 net rooms growth to approach 5 percent. CitizenM
Times
28-04-2025
- Business
- Times
Marriott to buy Citizen M hotels in move to ‘affordable luxury'
The hotel giant behind the Ritz-Carlton and Sheraton brands has struck a deal to buy Citizen M as part of its quest to expand into the 'affordable luxury' market. Marriott International has agreed to pay $355 million for the Citizen M brand and related intellectual property, adding that the acquisition would 'enhance options' for its guests and members of Marriott Bonvoy, the group's rewards programme. The owners of the Dutch-based operator, which appointed Morgan Stanley and Eastdil Secured to explore options for the business last year, include the Dutch pension provider APG, its largest shareholder, as well as Citizen M's founder Rattan Chadha and the Singaporean wealth fund GIC. The sellers could receive earn-out payments of up to $110 million based on future growth of the brand over a specified time frame, Marriott said, but these payments would not start until the fourth year following the completion of the deal. Citizen M, which opened its first hotel at Schiphol Airport, Amsterdam, in 2008, operates 8,544 rooms across 36 hotels in more than twenty cities in Europe, Asia and the United States. It has another three hotels, with a total of 600 rooms under construction and expected to open next year. Driven by the demands of a younger generation wanting 'authentic' travel experiences with a local feel, 'lifestyle' hotels in Europe have been getting swooped on by mature brands including Marriott, Hilton and InterContinental Hotels Group. • Five holidays a year? Millennials like me expect nothing less 'We are thrilled to add Citizen M 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,' Anthony Capuano, president and chief executive of Marriott International, said. Chadha, founder and chairman of Citizen M, added: '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 Citizen M's global reach and brand impact.' Marriott, which runs the Grosvenor House Hotel in Park Lane, central London, has more than 9,300 properties under more than 30 brands including Ritz-Carlton, Sheraton and Le Méridien. A decade ago Marriott took over Starwood Hotels & Resort Worldwide, the owner of the Sheraton and Westin brands, for $12.2 billion, creating the world's biggest hotel group. Assuming that the transaction will close this year, the company expects full-year net room growth to approach 5 per cent in 2025. The deal is subject to various customary conditions, including US regulatory approval. Marriott, based in Bethesda, Maryland, reported net rooms growth of 6.8 per cent last year having increased the number of rooms it has by 123,000 units, taking its total to 1.7 million rooms worldwide. It expects revenue per available room growth for international markets, apart from greater China, to be higher than that of the United States and Canada this year.
