by Donald Wood
Last updated: 10:20 AM ET, Fri March 10, 2023
Marriott International has received approval from the Mexican government to acquire the City Express brand portfolio from Hoteles City Express.
Marriott's jump into the affordable midscale segment was approved by Mexico's Federal Economic Competition Commission (COFECE) and is expected to close in the second quarter of 2023, subject to closing conditions.
Once the deal is completed-it was originally announced in October-the hotel giant will acquire the Hoteles City Express brands, which include City Express, City Express Plus, City Express Suites, City Express Junior and City Centro.
"The regulatory approval of the transaction is a significant milestone in the closing process," Marriott's Caribbean and Latin America President Brian King said. "We're thrilled about entering the appealing midscale lodging category and offering customers even more choice in the destinations they seek for both business and leisure stays."
In total, the portfolio includes approximately 150 hotels and around 17,000 rooms in more than 70 cities in Mexico and three additional countries in Latin America. Marriott expects to update the City Express brands with its signature "by Marriott" endorsement.
City Express will become Marriott's 31st brand and the acquisition will help the hotel giant become the largest hotel company in the Caribbean and Latin America, increasing its presence in the region by approximately 45 percent to over 480 properties across 37 countries.
Last month, Marriott revealed that its economic outlook continued to improve over 2022, as seen in its latest fourth-quarter and year-end report, signaling a slow yet steady rise above the pre-pandemic average.
In comparison with the last quarter of 2021, RevPAR, or revenue per available room, grew 28.8 percent worldwide - international markets increased 45.1 percent, while the U.S. and Canada grew 23.6 percent.
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