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Marriott International will pay $ 355 million for the Netherlands hotel chain, Citizenm, which should help raise the growth of Marriott’s net rooms in 2025.
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The addition of Citizenm gives Marriott a chain with 36 hotels open in more than 20 cities in the world.
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The company said that if the transaction ends this year, it sees 2025 the growth of the net room approaching 5%, compared to its previous prospects from 4%to 5%.
Marriott International (MAR) Actions increased on Monday while the hotel operator increased its prospects for growing 2025 net rooms after purchasing a hotel chain based in the Netherlands Citizenm for $ 355 million.
The company said that the acquisition “should accelerate the global expansion of Marriott of its service and lifestyle accommodation offers, while the company continues to focus on expanding its portfolio to offer even more exciting options to customers and members of Marriott Bonvoy in the world”. He noted that Citizenm operates 36 open hotels, including 8,544 rooms, in more than 20 cities in the United States, Europe and the Asia-Pacific region.
He explained that, assuming that the agreement ends this year, “Marriott is now expecting full growth of the net rooms of 2025 to approach 5%”. Previously, the company provided net rooms to Increase 4% to 5%.
As part of the agreement, Citizenm will be part of Marriott, the hotels detained and rented subject to new long -term franchise agreements. In addition, Citizenm could receive up to $ 110 million “on the future growth of the brand over a specified and multi -year period”.
CEO Anthony Capuano described Citizenm “a unique and differentiated offer to our selected service marks portfolio while we continue to strengthen Marriott in this precious market segment in the world”.
Even with earnings of almost 2% today, the shares of Marriott International remains down approximately 14% so far this year.
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