Marriott to Expand Caribbean and Latin America Portfolio with City Express Acquisition

Dark/Light Mode (27/10/22)  Marriott has reached an agreement to acquire the City Express brand portfolio, marking Marriott’s entry into the affordable midscale segment with its 31st brand.

The City Express portfolio currently comprises of 152 hotels, including 17,356 rooms across 75 cities in Mexico and three additional countries in Latin America.

Upon closing of the transaction with with Hoteles City Express, 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 has indicated that it plans to update the brand name with its signature “by Marriott” tagline.

Room at City Express Veracruz in Mexico

Under 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.

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.

“Our goal is to be everywhere our guests want us to be, with the right property in the right location and at the right price point,” said Brian King, President, Caribbean and Latin America, Marriott International. “This transaction with Hoteles City Express will expand our ability to do exactly that – initially in CALA, with opportunity around the world. We can’t wait to welcome City Express’s customers and continue the tradition of high-quality hotels and authentic hospitality established by Luis Barrios and his team.”

Founded in Mexico in 2002 by Luis Barrios, the Hoteles City Express brand portfolio provides customers with a range of mid-scale properties that include urban, suburban and extended stay offerings in Mexico, Costa Rica, Colombia and Chile.

“When we started thinking about City Express, we were convinced that a modern, efficient, and affordable brand would be very attractive to the local traveler. After our first 20 years, we are very excited and honored to work alongside Marriott, a company we’ve always admired, to take the brand to the next level,” said Luis Barrios, CEO of Hoteles City. “After having the opportunity to work with the Marriott team, we confirmed that we share common cultural values and a similar approach to hospitality.”

The closing of the transaction is subject to various customary conditions, including the approval by COFECE.

Marriott expects the transaction to close between the end of 2022 and the first half of 2023.

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