Acquisition of Starwood by Marriott

A month ago, a $12.2 billion merger deal between Marriott & Starwood was announced, making Marriott the largest hotel chain in the world.

The transaction combines Starwood’s leading lifestyle brands and international footprint with Marriott’s strong presence in the luxury and select-service tiers, as well as the convention and resort segment, creating a more comprehensive portfolio.  The merged company will offer broader choice for guests, greater opportunities for associates and should unlock additional value for Marriott and Starwood shareholders. 

Impact on Loyalty programs:

Marriott Rewards and Starwood Preferred Guest are considerably different programs. Their elite benefits are different, their points earning structures are different, and the value of their points are vastly different.

To provide a solution, the members of the Marriott Rewards program and Starwood Preferred Guest (SPG) could immediately link their accounts at Members.marriott.com to begin earning and redeeming points at all those hotels.

Members of both Marriott Rewards, which include The Ritz-Carlton frequent guests, and SPG will have their status matched. If they link their accounts, they will be able to transfer and redeem points at a three-to-one ratio. Three Marriott Rewards points will equal one SPG Starpoint. That will apply to redemption stays and the Marriott Rewards Experiences Marketplace and SPG’s Moments platform. Those programs allow members to redeem points for exclusive experiences, such as sporting events.

The Marriott-Starwood merger gives the combined company more power to compete in the hospitality industry. Combined, the companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide.  The combined company’s pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion.