Marriott International, Inc.’s MAR City Express brand recently announced plans to enter four new markets in the Caribbean and Latin America (CALA) region. The move strengthens Marriott’s presence in the affordable midscale segment.
Marriott Strengthens Its Midscale Portfolio
In 2023, Marriott's acquisition of the City Express brand marked a significant milestone — its entry into the affordable midscale market. This strategic move unlocked growth potential in key regions like Mexico, Chile, Colombia and Costa Rica while paving the way for fresh opportunities in secondary and tertiary markets.
Since then, City Express has demonstrated strong performance, expanding across CALA with 12 new hotel signings in 2024, comprising 1,236 rooms. The portfolio now includes 153 hotels with 17,777 rooms, showcasing Marriott’s commitment to meeting the needs of budget-conscious travelers.
Emphasis on Development Strategies Bodes Well
By focusing on new builds and conversions, Marriott is offering flexibility for developers while delivering value-driven options for guests. This approach positions the brand to meet the needs of business and leisure travelers in secondary and tertiary markets across CALA.
The company intends to open City Express by Marriott in Argentina with two properties, including City Express by Marriott Iguazu (in the second quarter of 2025) and City Express by Marriott Anelo Neuquen (in 2027). In Bolivia, the company expects to open City Express by Marriott Santa Cruz de la Sierra in early 2027.
In Nicaragua, the company stated the conversion of three properties, including City Express by Marriott Managua, City Express by Marriott Estelí and City Centro by Marriott La Recoleccion, in the third quarter of 2025. Additionally, Peru will welcome a dual-brand property in Casma by 2027, featuring City Express Plus by Marriott and City Express Suites by Marriott.
Laurent de Kousemaeker, Marriott’s Chief Development Officer for CALA, expressed enthusiasm about the brand’s expansion into Argentina, Bolivia, Nicaragua and Peru. He emphasized the rising demand for affordable, high-quality lodging options across the region and highlighted Marriott’s confidence in the continued success of City Express.
MAR’s Price Performance
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Coming to price performance, shares of Marriott have gained 8.7% in the past three months compared with the industry’s 7.1% rise. The company is benefiting from robust global travel demand, driving growth in international markets and steady performance in the United States and Canada, along with solid global booking trends. Also, increased business transient demand and leisure transient RevPAR added to the upside. The company stated that group revenues for 2025 were pacing 7% higher (by the end of the third quarter). The emphasis on expansion initiatives, digital innovation and the loyalty program bodes well. Earnings estimates for 2025 have increased in the past 30 days.
MAR’s Zacks Rank and Stocks to Consider
Marriott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Manchester United plc MANU sports a Zacks Rank #1 (Strong Buy). MANU delivered a trailing four-quarter earnings surprise of 95.6%, on average. The stock has gained 1.5% in the past three months. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for MANU’s 2026 sales and earnings per share (EPS) indicates growth of 8.1% and 10.2%, respectively, from the year-ago levels.
JAKKS Pacific, Inc. JAKK currently sports a Zacks Rank #1. JAKK delivered a trailing four-quarter earnings surprise of negative 75.9%, on average. The stock has gained 7% in the past three months.
The Zacks Consensus Estimate for JAKK’s 2025 sales indicates growth of 1.9% from the year-ago levels.
Carnival Corporation & plc CCL currently carries a Zacks Rank #2 (Buy). CCL has a trailing four-quarter earnings surprise of 326.4%, on average. The stock has surged 22.4% in the past three months.
The Zacks Consensus Estimate for CCL’s 2025 sales and EPS indicates growth of 4.1% and 24.7%, respectively, from the year-ago levels.
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