Marriott International announced a franchise agreement with Pacifica Hotels G.K. that will bring the City Express by Marriott brand to Japan. Two existing hotels in Osaka will be converted into City Express properties, opening in spring 2026 as City Express by Marriott Osaka Namba South (143 rooms) and City Express by Marriott Osaka Shin‑Imamiya (100 rooms). The rebranding marks the brand’s debut in the Asia Pacific region and adds 243 rooms to Marriott’s mid‑scale portfolio.
The City Express brand is positioned to capture value‑conscious travelers in Osaka, a major tourism hub that has seen a steady rise in domestic and international arrivals. By entering the Japanese market, Marriott expands its mid‑scale footprint in a high‑growth region and strengthens its presence in Asia Pacific, where the company has set a near‑5% net‑rooms growth target for 2025. Marriott’s Q3 2025 earnings showed a 4.7% increase in net rooms from the end of Q3 2024, underscoring the company’s momentum and the strategic fit of the new properties with its growth plan.
Pacifica Hotels G.K., the local partner, is backed by AB Capital and brings deep market knowledge of Osaka’s hospitality landscape. The partnership will integrate Marriott Bonvoy membership benefits into the new hotels, with expectations that the expanded loyalty program will drive repeat stays and higher RevPAR. The franchise agreement is part of Marriott’s broader strategy to diversify its brand mix and generate new revenue streams through conversions and franchise operations.
Shawn Hill, Chief Development Officer, highlighted the value proposition of City Express in Japan, noting that the brand’s focus on quality and affordability aligns with evolving traveler preferences. Seth Sulkin, CEO of Pacifica Hotels G.K., emphasized the opportunity presented by rising hotel rates in Osaka, while Alan Kam, Founder and CEO of AB Capital, remarked that the collaboration supports the firm’s investment vision in the region. Marriott’s President and CEO, Anthony Capuano, reiterated the company’s confidence in international markets and the role of development activity, including conversions, as a key driver of growth.
The expansion into Japan positions Marriott to compete more effectively against local and international brands that offer mid‑scale options. With Osaka’s tourism infrastructure and the city’s status as a gateway to the Kansai region, the new City Express hotels are expected to attract both business and leisure travelers. The move also supports Marriott’s goal of enhancing distribution and loyalty program integration, potentially boosting occupancy and RevPAR in the region as the brand gains traction among value‑seeking guests.
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