Marriott to Boost City Express Brand Presence Across CALA

Core Insights - Marriott International, Inc. is expanding its City Express brand into four new markets in the Caribbean and Latin America, enhancing its presence in the affordable midscale segment [1][2] Expansion Strategy - The acquisition of City Express in 2023 allowed Marriott to enter the affordable midscale market, unlocking growth potential in Mexico, Chile, Colombia, and Costa Rica, and creating opportunities in secondary and tertiary markets [2] - City Express has shown strong performance with 12 new hotel signings in 2024, adding 1,236 rooms, bringing the total portfolio to 153 hotels with 17,777 rooms [3] Development Focus - Marriott's strategy emphasizes new builds and conversions, providing flexibility for developers and value-driven options for guests, catering to both business and leisure travelers in secondary and tertiary markets [4] Upcoming Openings - In Argentina, Marriott plans to open two City Express properties, with one in Iguazu by Q2 2025 and another in Neuquen by 2027. In Bolivia, a property in Santa Cruz de la Sierra is expected to open in early 2027 [5] - Nicaragua will see the conversion of three properties by Q3 2025, while Peru will welcome a dual-brand property by 2027 [6] Market Demand - Laurent de Kousemaeker, Marriott's Chief Development Officer for CALA, highlighted the increasing demand for affordable, high-quality lodging options in the region, reflecting Marriott's confidence in the City Express brand's success [7] Financial Performance - Marriott's shares have increased by 8.7% over the past three months, outperforming the industry average of 7.1%, driven by strong global travel demand and solid booking trends [10] - Group revenues for 2025 are pacing 7% higher by the end of Q3, with earnings estimates for 2025 having increased in the past 30 days [10]