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What will the Marriott and MGM Resorts partnership look like?

Aug. 14, 2023
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5 min read
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One of the biggest hotel loyalty developments of the summer came from Las Vegas, where MGM Resorts and Marriott announced a new partnership shortly after MGM and Hyatt revealed they were parting ways on their own linked loyalty deal.

Marriott and MGM executives were pretty tight-lipped as far as details go about the new collaboration, but recent earnings calls from both companies gave a little more context of how the two will work together.

Of course, we also have a wish list of our own for what we’d like to see when MGM Resorts and Marriott officially begin their partnership at the start of October.

Higher Las Vegas room rates

The Marriott and MGM Resorts linkup appears to be a closer deal than prior partnerships for the casino resort operator. For starters, this is a 20-year deal that operates more like a traditional franchise agreement and “not just some sort of loyalty lockup,” Marriott CEO Anthony Capuano said on a company earnings call earlier this month.

MGM Resorts CEO William Hornbuckle similarly noted on an MGM investor call this month that the Marriott deal “goes a little deeper and longer, which we're excited by” in reference to how the two companies are slated to work closer together in the new partnership. There’s even a new brand collection — the MGM Collection with Marriott Bonvoy — launched out of this new agreement.

One area Hornbuckle appeared most excited by was the higher room rates that would likely come from working with Marriott and its booking channels. Further, it means the 180 million Marriott Bonvoy members can earn and redeem points at 17 MGM-affiliated properties in the U.S.

“This agreement will enhance our profitability by driving lower customer acquisition costs and with a better mix of higher [average daily room rates] and on-property spend,” Hornbuckle said.

In short: Don’t expect too many $25-per-night rooms at the Excalibur Hotel & Casino to run up your elite-qualifying-night count for higher Bonvoy status.

“By 2025, our expectation is that the Marriott customer base represents a meaningful segment of our hotel mix at premium rates,” Hornbuckle said.

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Bonvoy meets BetMGM

MGM clearly has other plans for Bonvoy members than just filling up casino resort guest rooms and suites. Hornbuckle noted a potential for Bonvoy members to feed into the BetMGM online gaming and sports betting platform.

“We have a program that I think that's going to motivate Bonvoy points for those folks ultimately. It sits independent with BetMGM today, but I think it'll be a key driver,” Hornbuckle said. “And when you have 180 million people aware of a product, we think it's pretty significant and interesting, and they can get rewarded in Bonvoy points and ultimately do things, both inside that organization and ultimately back within our own.”

Key differences from the Hyatt-MGM marriage

Hyatt’s partnership with MGM Resorts was a highly utilized World of Hyatt perk, as it enabled higher-tier Hyatt loyalists to get MGM Rewards Gold status (and therefore get free self-parking, priority check-in and waived resort fees). But this wasn’t a perfect marriage, either.

Despite there being a partnership, there was clearly a friction point between making reservations via World of Hyatt for an MGM property. It could take weeks — sometimes months, from personal experience — for points and elite-qualifying nights from an MGM Resorts stay to appear in one’s World of Hyatt account.

Given that both Hornbuckle and Capuano appeared to indicate the Marriott-MGM partnership would go further than just a loyalty linkage, there’s reason to believe some of these issues won’t be a problem under the new working relationship.

What we’d like to see from Marriott and MGM

Expect to get full details on the Marriott and MGM partnership between now and the launch of the program in October, but there are a few areas we expect are getting studied for potential opportunity.

Even before the Marriott partnership came along, MGM Resorts showed a willingness to enter the stand-alone hotel orbit without a casino attached. The company was interested in building a Boston convention hotel that eventually affiliated with Omni, according to a 2014 report in the Boston Globe. It was also planning a 21-story hotel in Nashville with a music venue capable of accommodating 4,000 attendees. MGM eventually dropped out of the project, the Nashville Business Journal reported in 2021.

There’s still enormous potential for MGM Resorts to get into hotels beyond its sprawling casino resorts, especially as the brand is known for hosting major events and conventions. It could provide a niche offering within Marriott’s broader convention hotel orbit.

Of course, we’re also expecting Marriott and MGM to provide a more seamless user experience between the two loyalty programs.

Match prices on both reservation platforms and sync up loyalty benefits (oh, and have points and elite-qualifying nights appear in a timely manner), and travelers will be happy.

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Featured image by BELLAGIO/ANTHONY MAIR/FACEBOOK
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership RewardsÂŽ Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership RewardsÂŽ points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership RewardsÂŽ points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership RewardsÂŽ points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership RewardsÂŽ points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership RewardsÂŽ point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership RewardsÂŽ points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American ExpressÂŽ Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American ExpressÂŽ Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American ExpressÂŽ Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.