New alliance gives Marriott ‘more dots on the map,’ drives profitability
for MGM.
LAS VEGAS – Marriott International just increased its global rooms
distribution by 2.4% by expanding its licensing agreement with MGM Resorts
International that makes 17 MGM resorts (40,000 rooms) in Las Vegas and other
cities available for booking on Marriott digital platforms. Financial details
of the deal were not disclosed.
MGM Collection With Marriott Bonvoy will launch in October
2023 with all MGM properties expected to be available via the strategic
alliance by the end of the year. Marriott and MGM already have a similar
relationship at The Cosmopolitan of Las Vegas.
In addition, members of MGM Rewards will be eligible to link
accounts with Marriott Bonvoy and receive select member benefits. Members of
Marriott Bonvoy will be able to earn and redeem points for stays at all MGM
Collection with Marriott Bonvoy properties. The more than 40 million
MGM Rewards members and more than 180 million Marriott Bonvoy members will have
earn-and-burn opportunities across both platforms.
The growth strategy is about adding more dots on the map and providing more earn and burn opportunities – not just in the form of hotel nights – for Bonvoy members.
Michael Bellisario
“The move leverages Marriott’s size, scale, and global
distribution,” said R.W. Baird analyst Michael Bellisario. “The growth strategy
is about adding more dots on the map and providing more earn and burn opportunities
– not just in the form of hotel nights – for Bonvoy members.”
MGM expects Marriott-generated room nights to drive
incremental profitability, replacing MGM’s lowest-yielding package rooms.
“Net-net, with occupancy largely back to pre-COVID levels, we see this new
partnership driving even greater levels of occupancy, importantly with a better
mix of higher-quality customers,” wrote Truist Securities analysts.
Four MGM properties will also be affiliated with existing
Marriott collection brands: Bellagio Resort & Casino will join The Luxury
Collection, ARIA Resort & Casino will join Autograph Collection, Park MGM
will become part of Tribute Portfolio, and The Cosmopolitan of Las Vegas will
continue its affiliation with Autograph Collection.
Additionally, Marriott and BetMGM have signed loyalty
marketing agreement to make Marriott Bonvoy the exclusive hospitality loyalty
program partner of BetMGM. Under this agreement, Marriott and BetMGM will
collaborate to provide Marriott Bonvoy members opportunities to earn Marriott
Bonvoy points on certain BetMGM transactions, and participate in exclusive
games, experiences, and offers on the BetMGM platform. In addition, BetMGM
Rewards members will have the opportunity to exchange BetMGM Rewards points
into Marriott Bonvoy points.