June 19, 2024

Hit Marriott and MGM resorts in Las Vegas, Benefit for Bonvoy Members

Neven a week after Hyatt and MGM Resorts confirmed their much-rumored conscious decoupling, MGM is announcing a new, deeper relationship with Hyatt’s much larger rival Marriott.

On Monday Marriott International and MGM Resorts International announced an exclusive long-term strategic licensing agreement and the creation of a new brand called the MGM Collection with Marriott Bonvoy.

The move immediately gives Marriott a major presence on the Las Vegas Strip and offers its loyalty members a range of new properties to access with points.

Last week, MGM Resorts and Hyatt announced will end their ten-year agreement, which allows members of their respective loyalty programs to earn and spend award points at each other’s properties. After September 30, World of Hyatt members will no longer be able to use points to book MGM properties.

“Put on your MGM hat,” says Michael Bellisario, senior research analyst at Baird who covers the hotel industry. “Bigger is better when you think about scale and distribution and global reach. That’s what Marriott has over Hyatt.”

As the world’s largest hotel company, Marriott reported sales of $22.2 billion last year, compared to MGM Resort’s 14.1 billion and Hyatt’s 6.3 billion.

But Bellisario isn’t talking about Marriott’s revenue or its 8,000 properties with 1.4 million rooms in 139 countries and territories. When he says “more is better,” he’s talking about the company’s loyalty program.

“Marriott Bonvoy is the brand,” says Bellisario. “It’s not 31 at Marriott – maybe 32 now – different hotel brands. It is the platform of Marriott Bonvoy and its 180 million members. That’s the value of the business. Marriott also happens to be a hotel company, hotel franchisor and manager.”

Travelers might think of the Marriott-MGM deal as some kind of “codeshare” arrangement, similar to the agreements that allow airlines to sell seats on each other’s flights. This type of reciprocal arrangement is much less common in the hotel industry.

Starting in October, hospitality giant Marriott Bonvoy’s 180 million members will be able to earn and redeem points for stays at select MGM properties in the US, and the 40 million MGM Rewards members can link accounts with Marriott Bonvoy and get a selected member. benefits.

The new agreement includes 17 properties in the MGM stable, which represents a dozen properties in Las Vegas and five properties in cities across the US.

In Las Vegas, eight resorts will comprise the core of the new MGM Resorts with Marriott Bonvoy collection: Vdara Hotel & Spa, MGM Grand Hotel & Casino, NoMad Las Vegas, The Signature at MGM Grand, Mandalay Bay Resort and Casino, New -York- New York Hotel & Casino, Luxor Hotel and Casino, and Excalibur Hotel & Casino.

Meanwhile, four more MGM properties in Las Vegas will be part of existing Marriott collections. Bellagio Resort & Casino will join the Luxury Collection and MGM na Park will be part of the Tribute Portfolio. Marriott’s Autograph Collection will soon include ARIA Resort & Casino and The Cosmopolitan of Las Vegas.

The newly created MGM resorts with the Marriott Bonvoy brand will include five MGM properties elsewhere in the United States: Borgata in Atlantic City, New Jersey; Beau Rivage in Biloxi, Mississippi; MGM Grand Detroit; MGM National Harbor in Baltimore, Maryland; and MGM Springfield in Western Massachusetts.

So far, Hyatt seems to be the jilted lover. “Now there won’t be any Hyatt-branded hotels on the Strip,” Bellisario says, adding that the situation can change quickly. “Las Vegas is still very unbranded hotel-wise, so there’s a lot of white space for Hyatt to try to partner with the casinos.”

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