Marriott International said on Friday it had received an okay from Mexico’s competition watchdog for its acquisition of the City Express brand portfolio from Hoteles City Express. The news clears the path for the $100 million deal, first announced in October, and which may now close before June.
The hotel group seeks entry into the affordable midscale segment by adding its 31st brand, City Express.
“We expect to grow that brand aggressively in the Latin America and Caribbean region,” said Anthony Capuano, president and CEO of Marriott, in an earnings call with analysts in February. “And, as we move toward closing that transaction, we are evaluating the applicability of that brand in other markets around the world.”
The deal includes 152 hotels with about 17,000 rooms. It will boost Marriott’s footprint in the Caribbean and Latin America by 45 percent, to 486 properties.
City Hotels said its hotel occupancy in December 2022 stood at 104.9 percent of the comparable pre-pandemic 2019 level.
“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,” said Brian King, president, Caribbean and Latin America at Marriott International.
Tags: future of lodging, latin america, Marriott International, mexico, midscale, news blog