Marriott International, Inc. (NASDAQ: MAR) today announced that it has received approval from Mexico's Federal Economic Competition Commission, COFECE, for the acquisition of the City Express brand portfolio from Hoteles City Express, S.A.B. de C.V. (BMV: HCITY), paving the way for the company's entry into the affordable midscale segment.
Marriott expects that the transaction, originally announced in October 2022, could close in the second quarter, subject to the satisfaction of other customary closing conditions. Upon closing, Marriott will acquire the Hoteles City Express brands (City Express, City Express Plus, City Express Suites, City Express Junior, and City Centro). The hotel portfolio, comprised of approximately 150 hotels totaling around 17,000 rooms in more than 70 cities in Mexico and three additional countries in Latin America, will become part of Marriott's franchise system after completion of the transaction. Following the closing, Marriott expects to update the City Express brands with its signature "by Marriott" endorsement.
"The regulatory approval of the transaction is a significant milestone in the closing process," said Brian King, President, Caribbean and Latin America (CALA), Marriott International. "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."
Upon closing, City Express will become Marriott's 31st brand and Marriott is expected to 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.