Marriott expanding City Express into US, Canada

INTERNATIONAL REPORT — Marriott is expanding its economy midscale brand City Express into the U.S. and Canada, which will be the brand’s first expansion outside of Latin America and the company’s entry into the “affordable midscale transient” segment.

Marriott acquired the City Express brand portfolio in May 2023 for $100 million in CALA, which added 17,000 rooms in Mexico, Costa Rica, Colombia, and Chile and increased the company’s footprint in the region by approximately 45%. It has been touting a “Project Mid-T by Marriott” brand expansion since last summer.

The company said the expansion is about strengthening its presence in the affordable midscale segment and offering “regionally relevant lodging options” for customers.

“Since entering the affordable midscale space with the acquisition of City Express in the Caribbean and Latin America (CALA) region just over a year ago, we have seen tremendous interest for the brand and are pleased with its growth across the region,” said Diana Plazas-Trowbridge, senior vice president and global brand leader, Select Brands, said in a news release.

Marriott said the City Express brand is doing well in the CALA region, with around 150 properties in the five countries and new markets opening in Bolivia, Brazil and Nicaragua.

“The initial reaction to our midscale products has been extremely positive,” Noah Silverman, global development officer, U.S. & Canada, said in the release. “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.”

The City Express by Marriott brand is designed to be conversion-friendly, with an opportunity for new builds in the future. Marriott said it has already received extensive interest from owners and franchisees and it expects to have signed agreements and possible hotel openings over the next few months.

A conversion is projected to cost approximately $15,000 to $30,000 per guest room.

Details on the new brand

At the NYU International Hospitality Industry Investment Conference in June, the company offered a look at renderings of the brand, which will have a “modern, clean design,” according to Diana Plazas-Trowbridge, senior vice president and global brand leader for Marriott’s select-service brands.

Hotels will also offer free breakfast and a fitness center. The average daily rate is expected to be in the $90 to $100 range.

“This traveler is looking for something in that affordable segment, for either business or for leisure, but have all basic needs met,” Plazas-Trowbridge said.

The conversion is projected to cost approximately $15,000 to $30,000 per guestroom. The brand’s “low bundled fee” of 10.5% -- including franchise, marketing and loyalty fees, among other charges – is expected to appeal to property owners, according to Silverman.