For starters, the loyalty programs will both continue to exist for the immediate future. Customers could transfer points online at a ratio of three Marriott Rewards points to one SPG Starpoint.
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Some of the features of the program are that it will include both members of the Ritz-Carlton Rewards and SPG.
Marriott has said members of Starwood and Marriott loyalty schemes can link their accounts here.
Loews Hotels chairman Jonathan Tisch, who is friends with Bill Marriott and was being interviewed by former Marriott EVP for global communications Kathleen Matthews, outlined the difficulties of combining two companies of this size but expressed confidence in Marriott’s ability to navigate it successfully.
The deal already marks a significant expansion of Marriott’s global footprint by more than doubling its presence in Asia, the Middle East and Africa. According to Sorenson, the company will not.
“We can leverage our channels, but I don’t see that there’s a direct opportunity in pricing”, Marriott’s chief financial officer Ken Rehmann said. “The strength of the loyalty program is driven in significant part by the size of the portfolio and the range of choice that’s offered to loyalty program members”.
Marriott hotels are known for their luxury appeal, as are Starwood’s roster; it’s essentially a merger of the some of the world’s most premium hotels. Instead they manage or franchise their brands to hundreds of individual owners, often real estate development companies.
However, that doesn’t mean there can’t be changes to brands. Sorenson said the goal is to “emphasize the distinctions” between each brand, and giving the consumer more options.
The company also inherited Starwood’s owned portfolio, which Starwood had been in the process of selling. And of course the deal, which Marriott says will take about two years to complete, also helps the company cut costs. It reassures franchisees that they can expect better corporate sales expertise and improved account coverage and support with the combined organization.
The Marriott takeover of Starwood has been a rocky journey that has taken nearly a year to consummate.
Marriott International, Inc. (NASDAQ:MAR) is valued at US$17.9 Billion and has recently fallen -0.56% to US$69.75. The company has not indicated whether it plans to stay in Maryland.
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In other news, SVP Brian G. Macnamara sold 5,000 shares of the company’s stock in a transaction on Wednesday, August 10th. Finally, Park National Corp OH raised its stake in shares of Host Hotels & Resorts by 0.7% in the second quarter. The latest trading activity showed that the Starwood Hotels & Resorts Worldwide, Inc. share price went up +35.84% from its 52-week low of $56.87 and trades lower -8.44% comparing its 52-week high of $84.37.
