Marriott Buys Starwood: What it means for the Travel Industry
Marriott International’s (MI) recent purchase of Starwood Hotels & Resorts Worldwide for $12.2 Billion dollars, makes it the largest hotel chain in the world. MI now controls 30 different brands, almost 5,800 properties and 1.1 million rooms in more than 110 countries worldwide. That’s more than 1 out of every 15 hotel rooms in the world per the Los Angeles Times.
Marriott controlled brands now include: Bulgari Hotels and Resorts, The Ritz-Carlton and The Ritz-Carlton Reserve, St. Regis, W, EDITION, JW Marriott, The Luxury Collection, Marriott Hotels, Westin, Le Méridien, Renaissance Hotels, Sheraton, Delta Hotels by MarriottSM, Marriott Executive Apartments, Marriott Vacation Club, Autograph Collection Hotels, Tribute Portfolio, Design Hotels, Gaylord Hotels, Courtyard, Four Points by Sheraton, SpringHill Suites, Fairfield Inn & Suites, Residence Inn, TownePlace Suites, AC Hotels by Marriott, Aloft, Element, Moxy Hotels, and Protea Hotels by Marriott.
Marriott now trumps both Hilton’s 773,000 and IHG’s 766,000 rooms, according to STR. The integration of both companies loyalty programs, Marriott Rewards and Starwood Preferred Guests, was a “central, strategic rationale for the transaction” according to Marriott CEO, Arne Sorenson, during a recent interview with the Associated Press.
Starwood put itself up for sale in April 2015. The Stamford, Connecticut, company had struggled to grow as fast as its rivals, particularly in “limited service hotels,” which are smaller properties which don’t have restaurants or banquet halls. They are often located on the side of the highway, near airports or in suburban office parks.
What does this mean for Loyalty Program Members?
For now, Starwood and Marriott will maintain separate loyalty programs due to competitive partnerships the two have in place. Starwood has a credit card deal with American Express as well as close partnerships with Delta Air Lines and Uber. Marriott has a much larger program that includes partnerships with Chase bank and United Airlines. “We have to see how those partnerships evolve,” said Sorenson.
However, members of Starwood and Marriott’s loyalty programs will be able to link their accounts together. Gold Elite members in one program will get Gold status in the other. Platinum Elite members will get Platinum in the other. Marriott Silver members will see Starwood’s lowest category, Preferred Plus.
Marriott Rewards members now have access to 1,300 more properties around the world. In maintaining the exception service Starwood’s members were accustomed to, members can now convert their points to Marriott points at a 3:1 ratio.
Read more | www.linkedin.com
Marriott controlled brands now include: Bulgari Hotels and Resorts, The Ritz-Carlton and The Ritz-Carlton Reserve, St. Regis, W, EDITION, JW Marriott, The Luxury Collection, Marriott Hotels, Westin, Le Méridien, Renaissance Hotels, Sheraton, Delta Hotels by MarriottSM, Marriott Executive Apartments, Marriott Vacation Club, Autograph Collection Hotels, Tribute Portfolio, Design Hotels, Gaylord Hotels, Courtyard, Four Points by Sheraton, SpringHill Suites, Fairfield Inn & Suites, Residence Inn, TownePlace Suites, AC Hotels by Marriott, Aloft, Element, Moxy Hotels, and Protea Hotels by Marriott.
Marriott now trumps both Hilton’s 773,000 and IHG’s 766,000 rooms, according to STR. The integration of both companies loyalty programs, Marriott Rewards and Starwood Preferred Guests, was a “central, strategic rationale for the transaction” according to Marriott CEO, Arne Sorenson, during a recent interview with the Associated Press.
Starwood put itself up for sale in April 2015. The Stamford, Connecticut, company had struggled to grow as fast as its rivals, particularly in “limited service hotels,” which are smaller properties which don’t have restaurants or banquet halls. They are often located on the side of the highway, near airports or in suburban office parks.
What does this mean for Loyalty Program Members?
For now, Starwood and Marriott will maintain separate loyalty programs due to competitive partnerships the two have in place. Starwood has a credit card deal with American Express as well as close partnerships with Delta Air Lines and Uber. Marriott has a much larger program that includes partnerships with Chase bank and United Airlines. “We have to see how those partnerships evolve,” said Sorenson.
However, members of Starwood and Marriott’s loyalty programs will be able to link their accounts together. Gold Elite members in one program will get Gold status in the other. Platinum Elite members will get Platinum in the other. Marriott Silver members will see Starwood’s lowest category, Preferred Plus.
Marriott Rewards members now have access to 1,300 more properties around the world. In maintaining the exception service Starwood’s members were accustomed to, members can now convert their points to Marriott points at a 3:1 ratio.
Read more | www.linkedin.com