Marriott International announced that it has received approval from Mexico’s Federal Economic Competition Commission (COFECE) for the acquisition of the City Express brand portfolio from Hoteles City Express, paving the way, according to the announcement, for the company’s entry into the affordable midscale segment.

Marriott expects that the transaction, originally announced in October 2022, could close in the second quarter, subject to the satisfaction of other customary closing conditions.

The City Express portfolio comprises approximately 150 hotels totaling around 17,000 rooms in more than 70 cities in Mexico and three additional countries in Latin America. It will become part of Marriott’s franchise system after completion of the transaction. Following the closing, Marriott expects to update the City Express brands with its “by Marriott” endorsement.

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Brian King, president, Caribbean and Latin America for Marriott, said the regulatory approval is “a significant milestone” in the closing process. Upon closing, City Express will become Marriott’s 31st brand.

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