Marriott to debut City Express brand in El Salvador with four hotels

SAN SALVADOR - Marriott International announced Wednesday it has signed a multi-unit agreement with Corporación Polaris and Cardedeu to open four City Express by Marriott properties in El Salvador, marking the brand’s first entry into the country. The hotel giant, currently valued at $73.2 billion, maintains impressive gross profit margins of 82% and shows strong financial health according to InvestingPro analysis.

The agreement will add 440 rooms to Marriott’s portfolio in El Salvador, expanding the company’s presence in the affordable midscale segment across the Caribbean and Latin America region.

The four properties will be strategically located across San Salvador to serve both business and leisure travelers. City Centro by Marriott San Salvador, featuring 31 rooms in the historic center, is expected to convert by the end of 2025. City Express by Marriott Aeropuerto and City Express by Marriott Santa Elena are planned to open in late 2026, while City Express Plus by Marriott San Benito is scheduled for completion in late 2027.

"We are very excited to introduce City Express by Marriott to El Salvador, a vibrant and culturally rich market," said Alonso Burgos, Vice President of Development for Marriott International in the Caribbean and Latin America region, in the press release.

The expansion comes as El Salvador has reportedly more than doubled its hotel room capacity in recent years, according to the company statement.

City Express by Marriott currently operates 153 hotels with over 17,700 rooms across the region, with 62 additional projects in development. The brand is also expanding into Argentina, Bolivia, Nicaragua, Peru, the United States and Canada.

Marriott International (NASDAQ:MAR) operates nearly 9,500 properties across more than 30 brands globally, delivering 4.8% revenue growth in the last twelve months. Want deeper insights into Marriott’s performance metrics and growth potential? InvestingPro offers comprehensive analysis with 10+ additional exclusive tips and detailed financial metrics.

In other recent news, Marriott International has announced an increase in its quarterly dividend to 67 cents per share, reflecting the company’s robust earnings and cash generation. This decision underscores Marriott’s financial health and commitment to shareholder value. Jefferies has upgraded Marriott’s stock rating to Buy, raising the price target to $303, citing the strength of Marriott’s business model and its potential for growth even in uncertain economic conditions. Analyst David Katz from Jefferies highlights a shift from cyclical revenue to more stable net unit growth as a key driver of earnings. Meanwhile, UBS has maintained a Neutral rating with a $299 price target, noting changes in Marriott’s room construction figures and their impact on future growth assessments. JPMorgan also initiated coverage with a Neutral rating, pointing out a balanced risk/reward profile but limited upside potential at current valuations. Marriott’s CEO, Tony Capuano, has observed that consumers are delaying hotel bookings, although interest in travel remains strong. These developments come as Marriott continues to navigate changing consumer behaviors and industry dynamics.

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