Dive Brief:
- Marriott International will expand its City Express by Marriott brand into the U.S. and Canada, the company announced Tuesday.
- Marriott acquired City Express’ Caribbean and Latin America region brand portfolio in May 2023, marking the company’s entry into the midscale segment.
- Marriott leaders previously referred to the brand as “Project Mid-T” in a June announcement of its plan to launch a conversion-focused, transient flag in the U.S. The expansion is part of Marriott’s “continued focus on strengthening its presence in the affordable midscale segment,” per the news release.
Dive Insight:
Since acquiring the City Express brand from Hotels City Express last year, Marriott has seen “tremendous interest for the brand” and is “pleased with its growth across the [CALA] region,” said Diana Plazas-Trowbridge, senior vice president and global brand leader for select brands, in a statement. In a second quarter earnings call in July, CEO Anthony Capuano noted that the City Express portfolio had “meaningfully outperformed” the company’s RevPAR expectations for the quarter.
In the U.S., Marriott said the brand has already garnered “extensive” interest from owners and franchisees. The company anticipates signed agreements, and possible hotel openings, in the next few months.
"The initial reaction to our midscale products has been extremely positive," said Noah Silverman, global development officer for the U.S. and Canada, in a statement. "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. & Canada."
City Express, designed to be conversion-friendly, offers a “light operational model and functional design,” according to Marriott.
Speaking to Hotel Dive in June, Plazas-Trowbridge said the brand would offer a “very clean and modern design,” with guest rooms ranging on average from 16.5 to 22 square meters. She added that it would cater to a variety of travelers in the midscale segment, including business professionals, families and corporate and leisure groups.
“There is opportunity and demand, both from our owners and franchisees, for products within our system in this [middle] tier, and also from consumers who would like to take advantage of the opportunity to have products that Marriott has in this tier,” Silverman told Hotel Dive, also in June.
He added that he expected the hotels “to go in locations that may [otherwise] be challenging from just a cost [to develop and operate] perspective to do with our other brands.”
City Express currently comprises more than 17,000 rooms across Mexico, Costa Rica, Colombia and Chile, with plans to enter Bolivia and Nicaragua, according to Marriott.
