Marriott and MGM Resorts International announced a partnership Monday to link their loyalty programs and provides customers more options for cashing in.
Under the deal, MGM guests in the USA can earn Marriott Bonvoy rewards points and Bonvoy members will in turn have access to 17 MGM properties after they spend their points.
MGM’s 40,000 rooms will increase Marriott’s global portfolio offerings by 2.4%.
The partnership seeks to capitalize on frequent or business travelers, who may be fiercely loyal to certain hotel brands in effort to rack up rewards. Those loyalty programs drive business and help to distinguish competitors at a time when travel is continuous to rebound from a pandemic pause.
“The worth is in the amount and the standard of the client,” MGM CEO Bill Hornbuckle told CNBC in an interview Monday.
Bonvoy has greater than 180 million members. In the event that they wish to use their reward points for a stay on the Las Vegas Strip, currently their only hotel option is the Cosmopolitan, which MGM bought in 2022.
When the brand new partnership launches this fall, Bonvoy members will give you the chance to redeem their rewards at 12 additional resorts on the Strip and five more MGM resorts nationwide.
Marriott CEO Tony Capuano said MGM Resorts brings a wealth of mental property to the portfolio in addition to entertainment, high-end culinary options and other one-of-a-kind experiences.
“It’s really an exciting opportunity for our membership,” Capuano said.
Capuano said last month that the worldwide hotel chain raised its revenue per available room forecasts based on a 26% hike in group business this yr.
The convention business has yet to completely recuperate from its pandemic lows. Still, the conference calendar is packed, and there is optimism that group business, together with increased international visitation, could push results higher.
Las Vegas is one in every of the highest destinations in the USA for conventions, conferences and meetings.
When asked whether the Bonvoy program would give MGM a competitive advantage in group business against competitors like Caesars, Hornbuckle said, “The reply is totally, unequivocally yes.”
Casinos, meanwhile, are facing tough year-over-year comparisons for the second half of 2023, and the partnership with Marriott could deal MGM a competitive advantage in its sports betting business, BetMGM, co-owned by Entain.
Customers of MGM’s sportsbook will earn Bonvoy points on some transactions, and Bonvoy members will see MGM sportsbooks marketing on the Marriott site.
BetMGM CEO Adam Greenblatt said in a news release announcing the deal that it’s going to create a “truly robust rewards program that connects our players and Marriott guests to the total BetMGM omnichannel experience.”
— CNBC’s Dawn Giel, Jessica Golden and Kasey O’Brien contributed to this report.
