Marriott International and Spanish hotel group AC Hotels have signed a preliminary agreement to form a joint venture to manage and franchise a new lodging co-brand across Europe and Latin America.

The co-brand, AC by Marriott, will incorporate AC Hotels’ design and technology with Marriott’s global systems, distribution and sales platforms.

The four-star co-brand is expected to rebrand 90 existing AC hotels in Spain, Italy and Portugal, and roll out new properties from next year.

The hotels will continue to be owned by affiliates of AC Hotels and other third parties, and future hotels will be added under management contracts and franchise agreements.

The joint venture will be led by AC Hotels and will be supported on key functions from Marriott’s team in Europe.

Deloitte Corporate Finance in Madrid is acting as the lead financial advisor to both parties in this transaction.

AC Hotels has a portfolio of over 90 owned, leased or managed hotels in Spain, Italy and Portugal, while Marriott International owns 3,500 properties worldwide.