Marriott Agrees to Acquire Mexican Midscale Brands for $100M

Marriott International signed a $100 million deal with Mexico-based midscale hospitality company Hoteles City Express to acquire its City Express brand portfolio, the company announced Wednesday.

The planned acquisition includes more than 17,000 guest rooms in 152 hotels across 75 cities in Mexico and Costa Rica, Chile and Colombia, solidifying Marriott’s position as the largest hotel company in Latin America and the Caribbean, according to the company.

The deal is subject to customary conditions, including the approval of Mexico’s Federal Economic Competition Commission, but Marriott expects the transaction to be complete by the first half of 2023, the company announced.

For a $100 million price tag, Marriott is set to gain its 31st brand with Hoteles City’s portfolio, including City Express, City Express Plus, City Express Suites, City Express Junio and City Centro, according to the company. Upon closing, all acquired properties will become part of Marriott’s franchise system and will include “by Marriott” in name, the company announced.

Through the agreement, Marriott also is set to acquire Hoteles City’s intellectual property, trademarks, domains, the City Premios loyalty program and all other assets associated with the brand, according to the company.

The deal marks Marriott’s entry into what it called the affordable midscale market. “We’re excited to enter a new lodging category – the popular affordable midscale segment where we see significant potential,” Marriott International CEO Anthony Capuano said in a statement.

The transaction with Hoteles City Express would increase Marriott’s presence in the region by 45 percent, which now includes 486 properties across 37 countries, according to Marriott.

Angelique Platas www.businesstravelnews.com