Marriott Expands Properties with Upcoming Acquisition of Hotels City Express

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Marriott International, already ranked as the world’s largest hotel chain, continues expanding its hospitality empire after acquiring its latest hotel brand: Hotel City Express. With travel and hotel bookings resurging to pre-pandemic levels and beyond, the new acquisition positions Marriott to capture the reservations of a brand new traveler segment.

Marriott Acquires Hotels City Express

On October 19, 2022, Marriott International released a press release announcing its latest acquisition of the Mexican-based hospitality brand Hotels City Express. The deal will close for $100 million and include all Hotels City Express sub-brands and global assets.

Hotels City Express was founded in 2002 and has expanded to 152 hotels throughout Latin America in countries including Mexico, Colombia, Costa Rica, and Chile. The parent company houses brands like City Express Plus, City Express Junior, City Express Suites, and City Centro, all of which will be included in the deal. While the Hotels City Express will remain the front-facing brand on the established properties, their names will be updated to include the ‘by Marriott’ insignia.

Marriott Targets A New Kind of Traveler

The upcoming hotel chain acquisition by Marriott International further positions it as a dominant player in the hospitality industry. It increases Marriott International’s presence in new geographic areas and helps the brand cater to a broader spectrum of travelers.

Latin America has been a recent target for expansion for the Marriott International brand. It has made recent news in travel media about various property openings, such as mid-tier hotels in Colombia and Costa Rica in August 2022 and the Sanctuary Cap Cana luxury all-inclusive resort in the Dominican Republic in September 2022. However, its presence has grown exponentially with the acquisition of Hotels City Express, which already held properties in the region.

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Hotels City Express becomes the 31st hotel brand added to the Marriott International portfolio. The vast range of hotel brands helps the conglomerate cater to all travelers, regardless of their budget levels.

Marriott International’s hotel portfolio skews more toward mid-tier hotels with the Courtyard Brand and luxury properties under the Ritz-Carlton brand. Hotel City Express helps target more budget-friendly travelers. Its hotels are geared towards travelers who want a more ‘local’ hotel stay instead of all-inclusive stays.

Growth Potential for Marriott International

Acquiring Hotels City Express is not the first regional brand acquisition by Marriott. One of the most successful regional brands was the acquisition of Spain-based AC Hotel in 2011. Over the last decade, Marriott International has transformed AC Hotel from a regional European hotel chain into a global brand with properties worldwide. These same techniques can help Hotels City Express expand into new global regions and become a choice hotel for budget travelers.

After the acquisition finalizes, Marriott Bonvoy Members can earn loyalty points and use travel perks when staying at Hotel City Express properties.

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