How today’s consumers are spending their time and money
How today’s consumers are spending their time and money
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/how-todays-consumers-are-spending-their-time-and-money
Christina Adams is a partner in McKinsey’s Dallas office, and Kari Alldredge is a partner in the Minneapolis office. Monica Toriello is an editorial director in the New York office.
What are the trends shaping consumer sentiment and behavior in 2025—and what are the implications for brands and retailers?
People are spending more of their time alone and online. Gen Zers don’t feel financially secure but are willing to splurge. In their search for value, shoppers are buying smaller pack sizes or lower quantities of their preferred brands.
These are some of the trends highlighted in McKinsey’s ConsumerWise research on consumer sentiment and behavior, drawing on a survey of more than 25,000 consumers in 18 countries. Two ConsumerWise leaders discussed the findings on a recent webinar, excerpts of which are featured in this episode of the McKinsey on Consumer & Retail podcast, hosted by Monica Toriello. An edited transcript follows. (For ConsumerWise insights about the upcoming US holiday shopping season, read “An update on US consumer sentiment: Settling in for a tepid holiday season,” and the related podcast episode, “Holiday shopping 2025: US consumers hunt for early deals.”)
Monica Toriello: Hello, everyone. I’m Monica Toriello, an editorial director at McKinsey. We’re excited that you’ve joined us today to hear more about McKinsey’s report, titled State of the Consumer 2025: When disruption becomes permanent. As I’m sure many of you have observed, consumers are doing interesting things; they’re making what seem like paradoxical buying decisions. McKinsey’s ConsumerWise research unpacks some of the underlying motivations and drivers behind these decisions. Today, we have the pleasure of hearing from the two global leaders of our ConsumerWise capability: Christina Adams, a partner in our Dallas office, and Kari Alldredge, a partner based in Minneapolis. They are coauthors of the State of the Consumer report.
Kari and Christina, before we dive into the consumer sentiment data, I’d like to ask a high-level question about consumer sentiment data in general. One thing you’ve observed in recent years is a decoupling of consumer sentiment and consumer spending. It used to be that the two were fairly in sync: When sentiment was positive, people spent money—and when they weren’t feeling so great, they didn’t spend as much money. But that has not been the case recently. So, given this divergence, why should companies still pay attention to consumer sentiment? What are the benefits of knowing how consumers are feeling, in an era when how they’re feeling about the economy or about their finances is increasingly divorced from how they’re spending?
Kari Alldredge: It’s true that, at the highest level, consumer confidence—which has long been looked at to understand how consumers are feeling, and which had correlated quite closely with consumer spending—is less and less correlated, particularly in the United States and in Western Europe. That makes it only more important to understand consumer sentiment at a much more granular and detailed level. You can’t just depend on confidence. You need to dig deeper: look at it by demographic group, by psychographics, by generation. That’s one reason that we pull in a myriad of different data sources for this report. There’s spending data, foot traffic data, digital data on how consumers are spending their time online. We’re bringing a 360-degree view of the consumer, and that’s fueling much of what you’ll hear today.
Christina Adams: Another thing we have observed is there are different drivers of why people say they are confident or are lacking confidence. Some of those drivers are macroeconomic; some are based on pricing and inflation. And people are reacting differently. Gen Z, for example, is reacting quite differently from other generations. So, again, nuances matter.
More time alone and online
Monica Toriello: Let’s get into the five trends that you discuss in your report. The first trend sounds a little depressing: “People are spending more time alone and online.”
Kari Alldredge: There has been a remarkable shift in how people spend their time. That behavior that many of us developed during the pandemic, when we had no choice but to be online and alone, really has persisted. This is universal across demographic groups and globally: Consumers report that they have an extra three hours of free time in their week. We were interested to understand what consumers are doing with that free time, and we found that nearly all of it is being spent online and alone in a myriad of different activities—everything from hobbies and fitness to shopping.
What are the implications for consumer-facing companies? The first one is pretty obvious: Meet consumers where they are. Eighty percent of surveyed consumers—and again, this is true around the world—shopped online in the last month. So, brands really need to think about their online presence and how they’re showing up online.
There are other, more subtle implications for companies to consider. One is this notion of immediate gratification. During the pandemic, we all came to expect that we could order something, and it would show up immediately. Consumers are expecting immediate gratification and convenience. We’ve seen about 20 percent annual growth in food delivery over the five years since the pandemic. It’s an explosion of a behavior that was pretty nascent prior to 2020. So, think about ways to reduce barriers and friction.
Also, particularly for retailers and other experiential consumer-facing companies, thinking about gamification is critical—whether it’s gamifying your loyalty program or finding other ways to engage with consumers online and meet them where they are.
Monica Toriello: Can you give an example of that, Kari? How—or what—are companies gamifying?
Kari Alldredge: The best examples I’ve seen are in loyalty programs, whether it’s a direct-to-consumer company or even a brick-and-mortar retailer that makes achieving the next level of status a bit of a game. You can earn points, you see a leaderboard, you get badges for different activities on their site or in their stores.
Christina Adams: Some of that gamification and online interaction then drives in-store behavior. Certainly, there is a growing percentage of online-only shopping, but, by far, the majority of shopping is still omnichannel. It could be discovery or participation online, but purchasing is in store. Those dynamic forms of interaction create some of that interplay between the two, so omnichannel strategy remains important for brands.
‘The least trusted source of information’
Monica Toriello: It seems like there’s some tension between the “online and alone” trend and the next trend you’ll be highlighting, which is about trust in digital channels.
Kari Alldredge: Yes, this is one of those great paradoxes that we see in the data. It’s true that consumers are increasingly online and alone—and many of them report that they are discovering and researching products online, and much of that learning happens on social media. But it is also true that social media—and, in particular, influencers on social media—is the least trusted source of information for consumers. That is true around the world and across age and income groups, with the exception of China. It’s a stark paradox.
Consumers increasingly know that many influencers are paid. They also believe that many influencers aren’t even real. In the world of beauty or fashion, consumers understand that many of the images they see are AI-generated, so they’re increasingly distrustful of that information.
That said, they’re still using it to learn about products. But they’re making decisions based on other sources of information. It reinforces the importance of an omnichannel strategy, as Christina said. So, companies should take another look at traditional media, which, ironically, is a much more trusted source than social media. Thinking about the allocation of your marketing budgets across channels is critically important. In-store tactics—in-store promotions, experiential ways for consumers to touch and see and feel your product—are still very, very important in an omnichannel world.
Monica Toriello: Here’s a question from the audience: “Consumers distrust digital channels, and yet companies are increasing their ad spend on those same channels. What’s your advice to marketers?”
Kari Alldredge: I don’t believe that marketers’ budgets have caught up with where consumers’ heads are at. When we did this research just a year ago, the picture looked different: Social media was a more trusted source of information for many consumers. So, my first observation is that these numbers are moving quickly.
The second thing I would say is that digital is a closed loop, so you can know, in large part, whether your digital marketing is working or not. I would encourage marketers to do more granular research to understand the ROI of their digital spend.
Finally, I recommend thinking more broadly about the allocation of spend and potentially shifting some of it away from social media. To be clear, social commerce is still critically important. What has shifted is consumers’ trust in influencers on social media as a source of truth about the products they buy.
Christina Adams: The other major trend of the past year is the rise of AI. It’s led to a lot of content being created about which consumers, particularly younger consumers, have an inherent skepticism. There are certainly still some established, trusted influencers who remain relevant, especially as a complement to what brands might say themselves. But, as Kari said, influencers in general are not as trusted now as they might have been a year ago.
What matters to Gen Z consumers
Monica Toriello: The third trend is about the Gen Z consumer. Christina, tell us more.
Christina Adams: Gen Z is here. As a generation, they are established, fast growing, and fast changing. This is a critical moment in time: Gen Z’s average age now is 22. They range in age from 15 to 29. Since last year, there’s been a 45 percent increase in Gen Zers who are saying they’re married, a 23 percent increase in those with children. And 19 percent of Gen Zers are in decision-making roles at work.
This generation is fast gaining spending power. They view money differently from generations before them: They care a lot about financial security, but they are willing to splurge—and to splurge quite a bit more than generations before them. We don’t see any sign of that slowing down. We are seeing some shifts in areas that prior generations considered big investments, such as home purchases. Gen Z is investing quite a bit in experiences rather than things. They’re also spending on microexperiences—they’re willing to pay for the cup of coffee that brings them joy at the beginning of the day, or they’re willing to invest in nutrition, which they view as important.
Across the 18 countries we surveyed, 65 percent of Gen Zers on average—the lowest being about 50 percent in South Korea, all the way up to 85 percent in India, with all other countries landing somewhere in between—say they are willing to splurge in the categories that matter to them. In every single country, Gen Z was the highest-splurging generation.
Another thing to keep in mind as we talk about these trends is nuance. It’s important to have granular insights on the motivators of Gen Z—particularly where they’re choosing to spend and how they’re choosing to spend. For example, nutrition and wellness matter to Gen Z, but unlike earlier generations, among whom topics like “organic” and “natural” tended to emerge the most, for Gen Z it’s “protein.” That specificity is important. It’s not to say that organic and natural don’t matter, but the trend does take a bit of a different shape with Gen Z compared to prior generations.
Also, Gen Z uses AI more. They’re skeptical of AI, but they’re also aware of it and engage with it. We’re seeing some brands use AI tools to interface with consumers and reach Gen Z in a very effective way.
Monica Toriello: Another question from the audience: “Why are millennials second priority? Aren’t they a cohort with larger incomes, larger decision-making influence, and more disposable income? Why are we talking about Gen Z all the time?”
Christina Adams: I am a millennial, so I will speak on behalf of my generation. It is certainly not a forgotten generation. It is still the highest-spending generation at this moment in time. That said, millennial behavior at this point looks more similar to Gen X and even, in some aspects, to baby boomers. Millennial behavior is more known and established, and it is changing less quickly than Gen Z behavior.
To clarify, the data I quoted earlier was the change in Gen Zers who are married or have children. Those are not the absolute numbers, which are still relatively small—but, again, the increase in Gen Z parents every year is large and will continue to be large. So, because they are at a highly malleable point—and because, when they reach a critical age, they are expected to be bigger spenders than millennials—it’s important to understand them with nuance while not losing sight of millennials, Gen X, and also boomers, who are the second-largest spending generation at this point.
Kari Alldredge: Gen Z was shaped differently, right? They were college students during the pandemic. That is likely to have lasting implications for them. One way we’re seeing it is in the prioritizing of experiences over things.
And there are ways for companies—even companies that make things—to surround their thing with an experience. I’ll give you an example. I was recently in China, doing some work in the “sweet indulgences” category. We found that, among companies that have physical products, the ones growing the fastest—particularly among Gen Zers—are the ones whose products are worthy of being shared on social media. “This confection is so amazing. It costs twice as much as a similar thing, but I am willing to spend double the amount because it is so beautiful, and the way it’s presented is such an experience that I want to post it and share it.” That was eye-opening to me. It’s a great example of how a company that makes a physical product can capitalize on this notion of Gen Z being so interested in splurging, especially on experiences.
Local brands and the value equation
Monica Toriello: That’s a good segue to the fourth trend: the growing appeal of local brands.
Christina Adams: Buying local matters. It matters to 47 percent of the people we surveyed. That is a lot—it’s certainly not 90 percent of people, but it does matter. In the EU-5, that number is 52 percent. I should also clarify that when we say “local,” we don’t mean the farmer’s market on the corner. When we say local purchases, we mean domestic brands.
There are a few reasons why this is evolving. One is certainly tariffs: wanting a secure supply of the products you are purchasing and not having to worry about whether major price changes might be ahead. As for what companies are doing, one is that they’re promoting domestic or locally made products. This trend is also informing M&A strategies, as companies consider partnerships or acquisitions that create access for products within a country’s borders.
Monica Toriello: The fifth trend is that “the value equation is evolving.” What does that mean, Christina?
Christina Adams: This trend ties to a lot of what we’ve been talking about—and it’s important to note that we do think of this as value, not just price. As prices have continued to rise and as inflation remains a relevant topic, we see consumers defining value in a new way. Two of the top three concerns that consumers are talking about are related to prices and inflation.
We are seeing trade-down behavior continue. And I say that with full recognition that trade-down is an interesting juxtaposition to splurging, which we talked about earlier. Often, we see the same consumer doing both; it’s a matter of which categories they’re doing it in. They trade down in certain categories to enable splurging in others. It’s important to understand the consumer holistically—to understand the occasions and needs that are driving the difference between those behaviors.
I will also say, though, that the top way that consumers trade down is that they will look to purchase the same product, but they will purchase a smaller size or a lower quantity of it. That is different from the 2008 economic downturn, when buying private labels was the top way that consumers traded down. That is certainly still a way that consumers are trading down, but consumers are looking more to preserve behavior but at a lower absolute price point. Consumers are also changing the channels in which they shop. All of this points to revenue growth management [RGM] as an important consideration, particularly in thinking about price-pack architecture, channel strategy, and the overall dynamic ability to reach consumers with a price point that reflects the value they see in the product.
Kari Alldredge: One of the most interesting new trends that we’re seeing is this trade-off across categories, as opposed to just within categories. It’s one of the first times in the data that we’re seeing consumers say that they traded down on essential items to enable them to splurge on discretionary items. Understanding the cross-category choices that consumers are making is a different muscle for many companies, which tend to think about value as bounded within their category.
Monica Toriello: You’ve already touched on some of the implications for companies: building a 360-degree view of the consumer is one, investing in RGM is another. What else should companies prioritize?
Kari Alldredge: Portfolio shaping is important, whether that’s M&A or divestiture. Reshape your portfolio to lean into places where there is growth—by geography, by consumer segment, and by category. And finally, rewire your tech capabilities to support all this. We didn’t talk a lot about technology, but a couple of important places where we’re seeing that show up are innovation and marketing. For example, using AI to more quickly develop product concepts, get products to market, create marketing content, and understand marketing ROI are ways that companies are investing in technology to respond to these trends.
It Now Costs $18,000 to Get Top Status at Hilton. Is It Worth It?
https://www.fodors.com/news/hotels/hilton-honors-2026-changes-review
Hilton Honors is adding a new Diamond Reserve tier in 2026, promising premium perks for $18,000 a year—but is the splurge worth it?
For the most loyal fans of Hilton Hotels, their loyalty program just got a lot more rewarding–especially if you are a big spender with plenty of stays.
Starting in 2026, Hilton Honors will move from four loyalty tiers to five, reducing the required nights to earn Gold and Diamond status while adding a new highest tier. The Diamond Reserve level will grant even more luxury benefits for the company’s most loyal guests. But does the new loyalty tier offer value commensurate with its price tag?
What’s Changing With Hilton Honors?
The changes take effect on January 1, 2026. Guests will still earn Silver status after staying 10 nights, which comes with a free bottle of water and 20% points earning bonus on stays.
In 2026, Members reach the Gold level with one of the following:
– Staying 25 nights (down from 40 nights)
– Complete 15 stays (25% fewer compared to previous requirements)
– $6,000 in annual spend
To get to Diamond level, guests must complete one of the following:
– Staying 50 nights (10 fewer than before)
– Complete 25 stays (17% fewer stays)
– $11,500 in annual spend
Neither the Gold or Diamond levels come with new benefits. While both levels come with space-available room upgrades and milestone bonuses, Diamond level comes with Executive Lounge access and the ability to gift elite status to another Hilton Honors member.
The new Diamond Reserve level is only achievable with a combination of stays and spending. To earn the level, members need 80 nights or 40 stays and $18,000 in annual eligible spend. In addition to all the Diamond benefits, Diamond Reserve members also get:
– 120% bonus points on every stay
– One Confirmable Upgrade Reward to instantly upgrade rooms for cash or award bookings, including a one-bedroom suite, for a stay of up to seven nights. Members must book through Hilton’s channels, including the Hilton Honors app
– Diamond Reserves can earn another Confirmable Upgrade Reward after staying a total of 120 nights or earning 30,000 base points
– Guaranteed late checkout of 4 p.m.
– Complimentary access to Premium Clubs at select luxury, lifestyle, and full-service hotels.
Is Hilton Diamond Reserve Worth the Price Tag?
Status is only valuable if you use it to its fullest. Diamond Reserve is designed to reward those who either spend more at Hilton properties or stay a high number of nights. If you earn Diamond Reserve with only 40 stays, expect to spend an average of $450 per one-night stay. Should you decide to earn status by only staying 80 nights, your average daily rate drops to $225. Those values may change based on where you stay and your total number of annual nights.
How much value do the new benefits equate to? We can determine the total value through a rough quantification of each upgraded benefit.
120% Points Bonus: The standard earning rate for Hilton Honors points is 10 points per $1 spent at most hotels. With the 120% points bonus, guests will earn 22 points per $1 spent at participating hotels. Assuming an average daily rate of $225, guests will earn 4,950 Hilton Honors points per night (before credit card bonuses). At a conservative redemption value of 0.3 cents per point, members can roughly expect $14.85 in value per night. Across 80 nights, that turns into 396,000 points with an estimated $1,188 of value. Members can get even more value based on where they are staying and the average daily rate of the room: Redeeming at 0.6 cents per point drives the estimated value up to $2,376.
Upgrade Rewards: Having a guaranteed upgrade to use across Hilton’s network, including luxury brands Waldorf Astoria, Conrad, and LXR Hotels & Resorts, is an excellent and money-saving reward. But even without it, Diamond Reserve guests still have the highest priority for upgrades. According to hotel technology service provider Duve (which lists the Curio Collection by Hilton as one of its clients), hotels will charge around a 15% premium for a one-tier upgrade, which isn’t necessarily a suite. It’s impossible to quantify the exact value of upgrades because it will fluctuate based on where and when you stay, and if you get the coveted suite upgrade. But if we take the seven-day guaranteed upgrade and assume a 20% upgrade success rate (16 out of 80 nights) based only on the average daily rate, a (very) conservative value is around $775 over the year. That value increases significantly if a Diamond Reserve member earns the second guaranteed upgrade after staying 120 nights, or if they receive full suite upgrades each time.
Late Checkout: Diamond Reserve is the only tier that gets a guaranteed late checkout of 4 p.m. For all other tiers, it’s based on availability. Other guests can buy a late checkout for a fee of $40 to $60 if it is available. If a Diamond Reserve guest has a late checkout on each of the 40 stays, their yearly savings could be as much as $2,400.
Hilton Premium Club Access: Again, it’s very difficult to quantify the exact value of this benefit. Unlike regular executive lounges, Hilton says these clubs offer “elevated food and beverage offerings, quiet workspaces, and other coveted features.” If two guests in one room could skip paying for one meal and drinks by visiting the Premium Club, they are looking at an estimated savings of between $80 and $120 per night (a liberal estimate that can drop based on your dining habits). Across 80 nights, that could equate to $9,600 in savings–possibly the biggest value of all.
Is the “New” Hilton Honors Rewarding for My Travel Habits?
Hilton Honors’ new Diamond Reserve status is designed to reward the most loyal guests who prioritize all of their hotel stays across its 25 hotel brands. While most travelers will not achieve this level of rewards, those who are constantly on the road will see even more benefits for their loyalty. If we assume that this level of traveler has a Hilton Honors American Express card, the value they receive from the new Diamond Reserve status is multiplied. Combined, the new high-tier Diamond Reserve status may return almost all of the value from the $18,000 required spending if travelers take advantage of all the benefits.
Although the lower requirements for Gold status is a definite win for guests, I’m less excited about the mid-tier status as it can be earned at a lower price point from credit cards. With the lower requirements for earning Diamond status and the new Diamond Reserve status, Hilton is making a bold argument for winning the regular traveler’s business with bolder rewards for more stays. Considering their footprint of over 9,000 worldwide locations–a very close second to Marriott’s 9,200 branded properties–there may be a lot of value to be earned through consolidating stays with Hilton.
But of course, as is true with any loyalty program: Your value will vary.
Former Park SF assets sell at big discount
Newbond Holdings and Conversant Capital are the new owners of the Hilton in Union Square.
https://www.hotelinvestmenttoday.com/Deals/Mergers-and-Acquistions/Former-Park-SF-assets-sell-at-big-discount?
SAN FRANCISCO – A $408 million sale price has been reported for Park Hotels & Resorts’ former Hilton San Francisco Union Square and Parc 55 San Francisco (3,000 total rooms), recently acquired by Newbond Holdings and Conversant Capital. The price marks a reported 75% discount to the appraised values in a 2016 financing.
The hotels were subject to a $725 million non-recourse CMBS loan and were placed in court-ordered receivership in October 2023. At that time, Park no longer had any economic interest in the operations of the hotels.
This can be considered a great deal for the buyers in what has been a rebounding market, especially for group business, and the completion of the process for Park, who just reported seeing an upswing in group demand with its Hilton Hawaiian Village Waikiki Beach Resort reporting a 57% surge.
Park Hotels & Resorts Chairman and CEO Thomas Baltimore, Jr., stated, “We are extremely pleased that the court-appointed receiver successfully completed a sale of the Hilton San Francisco Hotels after a years-long process. While Park no longer has any economic interest in these assets, with the completion of this sale, Park is now able to remove the legacy items from our financial statements that remained following the transfer of these assets into receivership in 2023. As we look ahead to 2026, Park continues to remain laser-focused on executing our strategic plan to sell non-core assets, invest in ROI projects within our core portfolio and continue to strengthen our balance sheet.”
The new owners of the San Francisco properties stated they are planning extensive capital improvements, adding, “These hotels, anchored in the heart of Union Square and backed by Hilton’s strong global brand, are uniquely positioned to benefit from San Francisco’s resurgence as a leading global destination.”
The sale of the Parc 55 and Hilton Union Square is very significant as these two hotels comprise 20% of the room supply in the city of San Francisco, according to Alan Reay of Atlas Hospitality Group, Newport Beach, California.
Reay told Hotel Investment Today that the huge drop in value from the $1.561 billion appraisal in 2016 can be attributed to a number of factors:
1. Huge increase in downtown office vacancy due to remote working.
2. Loss of major meetings and convention business in the city.
3. Negative publicity associated with spike in the number of homeless and crime in the downtown area.
"At a purchase price of only $138,634 per room it sold at a fraction of replacement cost and will be viewed long term as a great acquisition price as San Francisco is already showing positive revenue growth for hotels," Reay added.
City in recovery
While city leaders are excited about the deal closing, it comes after Park stopped making payments on a $725 million loan on the properties in 2023 due to weak revenues and soft demand.
While the rebound is on, San Francisco is not all the way back. Room revenue was $242 million in October — down more than 10% from October 2019, according to CoStar data.
But it seems to be enough for investors this month with Blackstone announcing the acquisition of the Four Seasons hotel in the financial district and Sixth Street closing on The Clancy.
Blackstone is acquiring the 277-room for $130 million, according to the Wall Street Journal. It would be Blackstone’s first acquisition in the city in almost 10 years. The price for the property in the heart of the city’s financial district is reportedly $20-30 million less than what seller Westbrook Partners had listed it for more than a year ago.
Sixth Street, a global investment firm, acquired The Clancy, a 410-room lifestyle hotel in San Francisco, from Braemar Hotels & Resorts for $115 million. The fee-simple hotel will continue to be managed by Marriott International as an Autograph Collection hotel.
“This investment reflects our deep conviction in the San Francisco recovery story, which we believe is in its early innings,” said Marcos Alvarado, partner and head of US Real Estate at Sixth Street. “Improving leisure and convention travel is bolstered by strong tenant demand from expanding AI firms, which provides a constructive backdrop for future performance at The Clancy.”
Following Marriott integration, citizenM owners change name
The citizenM Dublin St. Patricks in Ireland is one of 37 hotels owned by Another Star
https://www.hotelinvestmenttoday.com/Development/Owners/Following-Marriott-integration-citizenM-owners-change-name
VOORSCHOTEN, Netherlands — Following the completion of its citizenM integration with Marriott International, the company that founded, owns and operates citizenM hotels has unveiled its new name — Another Star.
Under its new identity, Another Star will continue to own and operate all current citizenM hotels in global gateway cities in Europe and the United States through long-term franchise agreements with Marriott International.
Another Star also announced the successful close of a $685 million hotel portfolio refinance facility, led by J.P. Morgan Bank in partnership with Denver-based KSL Capital Partners. Another Star said this transaction represents one of the largest hotel financings of 2025.
All citizenM hotels have now been integrated into the Marriott Bonvoy system, and Another Star said it will continue to offer its paid membership program mycitizenM+, which will now also provide members with instant Marriott Bonvoy Gold Elite status.
“When we started in 2006, our project name was One Star is Born, inspired by the ambition to redefine luxury hospitality and make it accessible. That ambition gave birth to citizen,” said Another Star CEO Lennert de Jong. “With the sale of the brand to Marriott International, we honor that legacy and take the next step as Another Star: a company focused on achieving the highest guest satisfaction and profitability through the most efficient operating model. Building on [our] tech stack and leveraging the technologies now available, we aim to set a new standard once again. Our global integration with Marriott shows exactly what this team is capable of.”
Another Star said the refinancing reflects the market’s confidence in the company’s performance and long-term strategy.
“This financing marks a defining moment for our company. With J.P. Morgan’s trust and the momentum created by Marriott’s acquisition of the citizenM brand, we are ready to begin a new chapter and continue offering an incredible product at an accessible price point,” said de Jong. “Another Star was founded on the belief that travel should be inspiring, human and design-led, and we now have the structure in place to deliver that vision on a global scale.”
Another Star currently owns 37 hotels with 8,312 rooms across 20 cities, including London, Paris, Amsterdam, New York, Boston, Miami, and Los Angeles. Two new hotels are under construction in London and Washington, D.C, and are expected to open by mid-2026.
“CitizenM has consistently reshaped the hospitality landscape, and under the new banner of Another Star and following its recent transformative transactions, we believe the company is well positioned for further growth,” said Chris Kosonen, managing director at J.P. Morgan.”
Under its new identity, Another Star will continue to own and operate all current citizenM hotels in global gateway cities in Europe and the United States through long-term franchise agreements with Marriott International.
Another Star also announced the successful close of a $685 million hotel portfolio refinance facility, led by J.P. Morgan Bank in partnership with Denver-based KSL Capital Partners. Another Star said this transaction represents one of the largest hotel financings of 2025.
All citizenM hotels have now been integrated into the Marriott Bonvoy system, and Another Star said it will continue to offer its paid membership program mycitizenM+, which will now also provide members with instant Marriott Bonvoy Gold Elite status.
“When we started in 2006, our project name was One Star is Born, inspired by the ambition to redefine luxury hospitality and make it accessible. That ambition gave birth to citizen,” said Another Star CEO Lennert de Jong. “With the sale of the brand to Marriott International, we honor that legacy and take the next step as Another Star: a company focused on achieving the highest guest satisfaction and profitability through the most efficient operating model. Building on [our] tech stack and leveraging the technologies now available, we aim to set a new standard once again. Our global integration with Marriott shows exactly what this team is capable of.”
Another Star said the refinancing reflects the market’s confidence in the company’s performance and long-term strategy.
“This financing marks a defining moment for our company. With J.P. Morgan’s trust and the momentum created by Marriott’s acquisition of the citizenM brand, we are ready to begin a new chapter and continue offering an incredible product at an accessible price point,” said de Jong. “Another Star was founded on the belief that travel should be inspiring, human and design-led, and we now have the structure in place to deliver that vision on a global scale.”
Another Star currently owns 37 hotels with 8,312 rooms across 20 cities, including London, Paris, Amsterdam, New York, Boston, Miami, and Los Angeles. Two new hotels are under construction in London and Washington, D.C, and are expected to open by mid-2026.
“CitizenM has consistently reshaped the hospitality landscape, and under the new banner of Another Star and following its recent transformative transactions, we believe the company is well positioned for further growth,” said Chris Kosonen, managing director at J.P. Morgan.”
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