Marriott International has added its 31st hotel brand by acquiring the City Express chain of properties for $100 million.
The world’s largest hotel company has struck the deal with Mexico’s Hoteles City Express, which has a portfolio of 152 “affordable midscale” properties in 75 cities in Mexico and three other countries in Latin America.
The deal includes the City Express, City Express Plus, City Express Suites, City Express Junior and City Centro brands. When the acquisition is completed, the brand and hotels will become part of Marriott’s franchise system and will adopt the “by Marriott” signature.
Marriott said that the deal would make it the largest hotel company in the Caribbean and Latin America region with a total of 486 properties – a 45 per cent increase on the current position.
Anthony Capuano, CEO of Marriott International, said the transaction was a “strategic win” for the company.
“We’re excited to enter a new lodging category – the popular affordable midscale segment where we see significant potential,” he added. “With City Express by Marriott, we will be providing our customers with more choice through a new, approachable, moderate-priced offering, increasing opportunity for owners and franchisees as well as associates.”
Hoteles City Express was founded in 2002 by current CEO Luis Barrios and has properties in Mexico, Costa Rica, Colombia and Chile.
Marriott added that there was a “meaningful opportunity” to further expand the City Express by Marriott brand in the Caribbean and Latin America region, as well as other locations around the world.
The purchase is expected to be completed between the end of 2022 and the first half of 2023.