Marriott International is expanding its presence in Mexico, the Caribbean and Latin America, announcing an agreement with Mexico-based Hoteles City Express to acquire the City Express brand portfolio.
The $100 million move marks the hotel giant's entry into the affordable midscale segment with its 31st brand. Currently, the portfolio includes 152 hotels boasting 17,356 rooms across 75 cities in Mexico, Costa Rica, Colombia and Chile.
Upon closing of the agreed transaction, the brand and hotel portfolio will become part of Marriott's franchise system. The company will also acquire the franchise rights to five under-construction projects in the pipeline, representing an additional 676 rooms. Marriott expects to eventually update the brand name with its signature "by Marriott" endorsement, it said on Wednesday.
"This transaction with Hoteles City Express is a strategic win for Marriott and our customers, associates and owners and franchisees," Marriott CEO Anthony Capuano said in a statement. "We're excited to enter a new lodging category-the popular affordable midscale segment where we see significant potential. 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."
"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," added 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."
The transaction is expected to make Marriott the largest hotel company in the Caribbean and Latin America, increasing its presence by 45 percent to a total of 486 properties across 37 countries.
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