Starwood-Marriott Merger Creates Uncertainty For Hotel Customers

Marriott Anbang collage

A recent consumer survey by Phoenix Marketing shows that the massive merger of Starwood and Marriott—creating the world’s largest hotel chain—is creating uncertainty among customers over Marriott’s Rewards and Starwood’s Preferred Guest program.

Nearly two-thirds of those surveyed are worried the merger will make program rules across the industry more complicated, and make it harder to reach elite status in the program, as Marriott takes over more market share, according to Phoenix Marketing VP David Pluchino.

“Marriott is going to become an even bigger player in the arena,” David tells us.

Whatever ends up happening, David says, Marriott’s decision on the program will ultimately serve as a model for other major mergers and hotel rewards programs.

The Marriott-Starwood merger made headlines this year by sparking a bidding war between Marriott and China’s Anbang Insurance (chairman Wu Xiaohui pictured, left), as the eastern state-backed giant attempted to further expand its US hotel holdings. But after putting up the highest offer, Anbang walked away from the negotiating table.

Despite the uncertainty over the rewards programs, customers are happy that Marriott is the one doing the buyout, as the hotel brand pioneered guest loyalty features.

“Because Marriott is such a big player they trust it more,” Phoenix Marketing managing director John Antonello tells us. “They think 'it’s probably not a good thing, but because it’s Marriott we think they’ll do the right thing, and overall we should be OK.’”

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Site Centers To Stop Trading As It Winds Up Operations

Newmark: $179B In Low-Rate Real Estate Loans Face Refinancing Risk

Brookfield Veteran Departs To Become Pretium's Global Real Estate Lead

Lenders Accuse Nord Group Entities Of Pocketing Rents, Faking Insurance As Multifamily Empire Crumbles

Willy Walker On The Risks And Sacrifices Behind Walker & Dunlop's Growth

Howard Hughes Texas President Jim Carman To Step Down

Apartment Rent Declines Slowing, Demand Rising As Renter Pool Expands

Prologis Warns Higher Borrowing Costs Will Slow Industrial Deals, Development

After Rig Collapse, Citadel HQ Project Resumes With Safety Protocol Update

Swedish Real Estate Giant To Buy Stockbridge For Up To $550M

Space Race: How The Private Sector's Orbital Aspirations Are Driving CRE On Earth

Regulators Reject Proposed Rules For Data Centers On Nation's Largest Grid