Marriott International has reached an agreement to acquire Netherlands-based hotel brand CitizenM for $355 million.
The company is currently owned by a group of investors, including Dutch pension provider APG, Singapore investment fund GIC and founder Rattan Chadha.
CitizenM’s portfolio comprises 36 hotels (8,544 rooms) worldwide, with three more under construction. Upon completion of the transaction, CitizenM hotels will join the Marriott system under new long-term franchise agreements, while ownership of the properties will remain with the seller.
Marriott expects to earn about $30 million annually in stabilized fees. The seller could also receive up to $110 mil. in earn-out payments starting in the fourth year, based on future brand growth.