Hospitality firm Marriott International has entered into agreement to acquire the City Express brand portfolio from Hoteles City Express for $100m.
The brand portfolio includes City Express, City Express Plus, City Express Suites, City Express Junior, and City Centro.
Currently, City Express has a network of 152 hotels, including 17,356 rooms across 75 cities in Mexico and three other countries in Latin America.
As part of the deal, Marriott will also acquire associated trademarks, domains and related intellectual property, the City Premios loyalty programme, and other assets and liabilities related to City Express.
In addition, the company will acquire the franchise rights to five under-construction projects in the pipeline, representing an additional 676 rooms.
The deal is subject to various customary conditions, including the approval by COFECE and is expected to complete between the end of 2022 and the first half of 2023.
Once completed, City Express and hotel portfolio will join Marriott’s franchise system.
Marriott International chief executive officer Anthony Capuano said: “This transaction with Hoteles City Express is a strategic win for Marriott and our customers, associates and owners and franchisees.
“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.”
The acquisition will expand Marriott’s presence in the Caribbean and Latin America (CALA) region by 45% to 486 properties across 37 countries.