Marriott International's City Express brand is entering U.S. and Canadian markets, marking the brand's first foray outside of Latin America.
Executives had previously referred to this expansion as its Project Mid-T by Marriott. The company anticipates signed agreements, with possible openings, in the U.S. and Canada under the City Express by Marriott brand over the coming months.
"This brand expansion is part of the company’s continued focus on strengthening its presence in the affordable midscale segment and offering regionally relevant lodging options for every trip purpose and every price point," according to the news release announcing the expansion.
Marriott announced in October 2022 it would acquire the City Express brand portfolio, closing on the deal in May 2023. Marriott bought the brand from Mexico-based Hoteles City Express for $100 million. At the time of the announcement, the portfolio included
152 midscale hotels representing 17,356 rooms across 75 cities in Mexico and Costa Rica, Colombia and Chile.
Since the acquisition, Marriott has seen tremendous interest for the brand, and the company is pleased with its growth across the region, said Diana Plazas-Trowbridge, senior vice president and global brand leader, select brands at Marriott, in the news release.
More Marriott midscale
This is not Marriott's first play in the midscale space in the U.S. and Canada. The company entered the midscale extended-stay segment with the launch of its StudioRes brand in 2022. That brand is marketed as an affordable midscale option for extended-stay guests with average daily rate of $80 and revenue per available room of about $65.
The first StudioRes broke ground in January, in Fort Myers, Florida. That hotel is under development by Concord Hospitality and its development partner Whitman Peterson. Concord's plans call for developing around 50 of the brand in U.S. submarkets.
The City Express deal grew Marriott’s footprint in the Caribbean and Latin America by about 45%. Since then, there's been enough demand from guests and owners to expand into new upcoming markets, such as Bolivia and Nicaragua. Marriott recently announced plans to open City Express by Marriott in Brazil.
“We have been listening closely to our owners and franchisees to design a highly efficient operating model, and we are confident that City Express by Marriott will offer a strong value proposition for those looking to invest in a transient midscale product in the U.S. and Canada," said Noah Silverman, global development officer, U.S. & Canada, at Marriott, in the release.
Marriott has designed the City Express brand to be conversion-friendly while also keeping opportunities open for new builds in the future. It offers a light operational model and modern design that will give hotel owners the opportunity to capture guest demand while taking advantage of being part of Marriott's system.