Business
Marriott International to Acquire City Express Brand to Fuel Growth in Affordable Midscale Segment
Marriott poised to become the largest hotel company in the Caribbean and Latin America, expanding its presence significantly in secondary and tertiary markets
About this update from Marriott International
[{"type":"text","content":"Marriott poised to become the largest hotel company in the Caribbean and Latin America, expanding its presence significantly in secondary and tertiary markets in the region\nBETHESDA, Md., Oct. 19, 2022 /PRNewswire/ -- Marriott International (NASDAQ: MAR) announced today that it has reached an agreement with Hoteles City Express, S.A.B. de C.V. (BMV: HCITY) to acquire the highly regarded City Express brand portfolio, marking Marriott's entry into the affordable midscale segment with its 31st brand.\n\n \n \n \n \n \n \n\n \nThe portfolio is currently comprised of 152 hotels, including 17,356 rooms across 75 cities in Mexico and three additional countries in Latin America. Upon closing of the transaction, the brand and hotel portfolio will become part of Marriott's franchise system. Marriott will also acquire the franchise rights to five under-construction projects in the pipeline, representing an additional 676 rooms. Marriott expects to update the brand name with its signature \"by Marriott\" endorsement.\nUnder the terms of the agreement, Marriott will pay $100 million for Hoteles City's brand portfolio (City Express, City Express Plus, City Express Suites, City Express Junior, and City Centro), associated trademarks, domains and related intellectual property, the City Premios loyalty program, and other assets and liabilities related to the brand. Stabilized franchise fees are anticipated to be approximately $10 million for the existing portfolio. \nAs the largest hospitality company in the world, Marriott has a proven track record of growing regional brands by utilizing its global development engine as well as its extensive programs and revenue systems, such as the award-winning Marriott Bonvoy® loyalty platform and innovative digital travel programs including Marriott.com and the Marriott Bonvoy mobile app. The transaction is expected to make Marriott the largest hotel company in the Caribbean and Latin America (\"CALA\"), increasing its presence in the region by 45 percent, to 486 properties across 37 countries. Given the high-growth nature of the affordable midscale segment, the company sees a meaningful opportunity to further expand the City Express by Marriott brand in the CALA region, as well as in other locations.\n\"This transaction with Hoteles City Express is a strategic win for Marriott and our customers, associate...