Marriott to Purchase Metropolis Categorical Model, Including 152 Lodges in Latin America
Replace (Mar 10, 2023) – Marriott Worldwide in the present day introduced that it has obtained approval from Mexico’s Federal Financial Competitors Fee, COFECE, for the acquisition of the Metropolis Categorical model portfolio from Hoteles Metropolis Categorical, S.A.B. de C.V., paving the best way for the corporate’s entry into the inexpensive midscale section.
Authentic article (Oct 19, 2022) – Marriott introduced in the present day that it has reached an settlement with Hoteles Metropolis Categorical, S.A.B. de C.V. to accumulate the Metropolis Categorical model portfolio, which might be the corporate’s thirty first model.
The Metropolis Categorical portfolio is at the moment comprised of 152 lodges, together with 17,356 rooms throughout 75 cities in Mexico and three further nations in Latin America. Upon closing of the transaction, the model and lodge portfolio will grow to be a part of Marriott’s franchise system. Marriott may even purchase the franchise rights to 5 under-construction tasks within the pipeline, representing an extra 676 rooms. Marriott expects to replace the model title with its signature “by Marriott” endorsement.
Underneath the phrases of the settlement, Marriott can pay $100 million for Hoteles Metropolis’s model portfolio (Metropolis Categorical, Metropolis Categorical Plus, Metropolis Categorical Suites, Metropolis Categorical Junior, and Metropolis Centro), related emblems, domains and associated mental property, the Metropolis Premios loyalty program, and different belongings and liabilities associated to the model. Stabilized franchise charges are anticipated to be roughly $10 million for the present portfolio.
The transaction is predicted to make Marriott the biggest lodge firm within the Caribbean and Latin America, growing its presence within the area by 45 %, to 486 properties throughout 37 nations. Given the high-growth nature of the inexpensive midscale section, the corporate sees a significant alternative to additional broaden the Metropolis Categorical by Marriott model within the area, in addition to in different areas.
Hoteles Metropolis Categorical is a Mexico-based firm based in 2002 by Luis Barrios. The corporate’s model portfolio offers clients a variety of mid-scale properties that embody city, suburban, and prolonged keep choices in Mexico, Costa Rica, Colombia, and Chile. The model has been awarded the celebrated designation of “Marca Notoria” in Mexico for its hospitality sector management and model recognition.
The closing of the transaction is topic to varied customary situations, together with the approval by COFECE. Marriott expects the transaction might shut between the tip of 2022 and the primary half of 2023.