Marriott International has announced the expansion of its City Express Brand into the United States and Canada. The expansion brings what Marriott describes this brand as being the “company’s entry into the affordable midscale transient segment.” Marriott acquired the City Express brand and its hotels in Latin America and the Caribbean last year.
The City Express branding is being applied to what was previously referred to as Project Mid-T by Marriott (which sounds like something you need to ask your doctor about). While many expected that this would be a new brand concept, it’s interesting to see Marriott apply an existing brand used outside of the United States and Canada to this project.
The City Express brand is intended to be conversion friendly, focused on current hotel owners and operators that may want to move their property under the Marriott flag. Because of this there aren’t currently any new build properties in the pipeline, though Marriott has indicated that there is opportunity for new build properties in the future.
On conversion focused brands, we typically don’t see many brand standards as alignment to those standards costs money for hotel operators. We recently saw an update to the brand standards for W Hotels which will no doubt cost owners and operators money as they make updates.
These properties tend to offer fewer amenities as part of this conversion strategy but, in the grand scheme of things, that’s par for the course when it comes to these brands. The unfortunate thing for guests is City Express’ earnings with the Bonvoy program. While Marriott hasn’t released specifics around earnings for the new properties in the U.S. and Canada, I fully expect them to carry over the earnings structure.
Currently guests staying at City Express properties earn five Marriott Bonvoy Points per dollar spent and one Elite Night Credit per two nights, on a per stay basis. This is essentially half of what you would earn at any other Marriott Bonvoy property in the United States.
While most road warriors won’t be staying in City Express properties on a regular basis, I do worry that this will open the door to allow them to water down earnings across the board in the future. In what world does a night in a hotel not equal a night?
While I’m always happy to see the major hotel brands open new properties to provide more options to travelers, the introduction of the City Express brand to the U.S. market has me slightly concerned about the overall direction of the program. Hopefully Marriott doesn’t bring the punitive earnings for these properties to the U.S. and Canada but, I’m not holding my breath.
Summary
Marriott International is bringing its City Express brand to the United States and Canada. City Express will replace the working title, Project Mid-T by Marriott, as the company’s “affordable midscale property”. While it is always nice to see new properties opening, City Express’ earnings as part of the Marriott Bonvoy program leaves something to be desired.
(Images courtesy Marriott International)
