Paul Hastings Advising citizenM in $355 Million Sale to Marriott International

Paul Hastings LLP is advising citizenM, a unique and innovative hotel offering in the select-service segment, on its sale of its brand and related intellectual property to Marriott International (Nasdaq: MAR). The citizenM portfolio consists of 36 open hotels, comprising 8,544 rooms, across 20 cities spanning the United States, Europe and Asia, including economic capitals like New York, London, Paris and Rome.

At the closing of the transaction, Marriott will pay citizenM $355 million and, concurrently therewith, the citizenM portfolio will become part of Marriott’s system, with the hotels owned and leased by citizenM subject to new long-term franchise agreements with Marriott. Marriott may make up to an additional $110 million in earn-out payments to citizenM based on future growth of the brand over a specified post-closing period. The closing of the transaction is subject to various customary conditions, including U.S. regulatory approval.  

Hospitality & Leisure partner Rick S. Kirkbride led the Paul Hastings team, which included Los Angeles Real Estate partner Sam Alavi and London partner Edward Meadowcroft and associates Abby Siegel, Andrea Boutros and Lee Cumberland.

More details on the transaction can be found here.

About Paul Hastings

With widely recognized elite teams across 17 core practices, Paul Hastings is a premier law firm with a culture of excellence focused on providing intellectual capital and superior execution globally to the world’s leading investment banks, asset managers and corporations.