Marriott Gets Regulatory Nod In Mexico To Buy City Express Brand Portfolio

(RTTNews) - Marriott International, Inc. (MAR) said on Friday that it has received approval from Mexico's Federal Economic Competition Commission or COFECE, to buy City Express brand portfolio from Hoteles City Express, S.A.B. de C.V. ( HCITY).

The transaction, expected to be closed in the second quarter, will allow Marriott to acquire the Hoteles City Express brands. This includes around 150 hotels totaling around 17,000 rooms in over 70 cities in Mexico and three additional countries in Latin America.

Upon the completion of the deal, the acquirer expects to update the City Express brands with its signature "by Marriott" endorsement.

As announced in October, last year, Marriott will pay $100 million for Hoteles City's brand portfolio, including City Express, City Express Plus, City Express Suites, City Express Junior, and City Centro.

Stabilized franchise fees are expected to be around $10 million for the existing portfolio.