Marriott CFO on Preserving CitizenM's 'Innovative DNA'

Corporate acquisitions often work like this: Big Company buys a Cool Brand and then dismantles what made it cool. Marriott’s CFO told Skift that won't happen to CitizenM.

Marriott International's Chief Financial Officer Leeny Oberg sought to allay concerns about potential changes to CitizenM's distinctive identity following Marriott's $355 million acquisition announcement Monday. Oberg emphasized the hospitality group's intent to maintain the brand's operational independence.

"We’ve really demonstrated through a number of acquisitions that we are absolutely able to take a unique brand that we acquire, build on its tremendous reputation, and then grow it in our system," Oberg said.

In an unusual twist for a hotel brand acquisition, Marriott will give CitizenM's current leadership team continued wide sway over operations. The hotels will remain primarily operated by the current owner under a franchise agreement with Marriott.

"The real estate ownership and management is overwhelmingly staying with the seller, and in that case, we would expect that team to continue to operate the hotels and not be joining Marriott," Oberg said.

As Marriott weaves CitizenM into its 30-plus brand portfolio, Oberg said it plans to preserve the brand’s operational flair, technology-driven guest experience, and signature