Marriott International announced today that it has received approval from Mexico's Federal Economic Competition Commission, COFECE, for the acquisition of the City Express portfolio of brands from Hoteles City Express, SAB de CV (BMV: HCITY), paving the way for entry from the company to the limited services segment.
Marriott expects that the transaction, originally announced in October 2022, could close in the second quarter of the year, subject to the fulfillment of customary closing conditions. Upon closing of this transaction, Marriott will acquire the Hoteles City brands (City Express, City Express Plus, City Express Suites, City Express Junior and City Centro). The portfolio of approximately 150 hotels, which includes around 17,000 rooms in more than 70 cities in Mexico and three additional countries in Latin America, will become part of the Marriott franchise system upon completion of the transaction. Following this closure, Marriott hopes to update the brand name with its unique "by Marriott" endorsement.
"The regulatory approval of this transaction is an extremely important milestone in the closing process," said Brian King, president, Caribbean and Latin America (CALA) for Marriott International. "We are delighted to enter this attractive lodging category and offer our guests more choice in the destinations they desire for both business and leisure stays."
Upon closing of the transaction, 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 with nearly 480 properties in 37 countries.