The chain will be called Moxy.
Over the next ten years, 150 low-cost hotels will be opened in ten different countries, Marriott chief Arne Sorenson told a news conference in Berlin.
"Moxy Hotels is the essence of the next generation traveller, not only Gen X and Y but people with a younger sensibility, for whom contemporary style is paramount," he added in a statement.
"We have put thought and research into every aspect of the hotel, to reflect the expectations of this fast-growing customer segment," he added.
"We believe Marriott will lead the way in redefining the traditional budget hotel experience throughout Europe."
In addition to Germany, hotels would be opened in Austria, the UK, Finland, Ireland, the Netherlands, Norway and Sweden. The very first Moxy Hotel will open in Milan at the start of next year, Sorenson said.
Separately, the US hotel group Starwood Hotels and Resorts said it plans to open 50 new hotels in Europe over the next five years, with particular emphasis on on eastern European countries and Turkey.