Dive Brief:
- Marriott International and MGM Resorts International announced today an exclusive long-term strategic licensing agreement and the creation of MGM Collection with Marriott Bonvoy, a program launching in October set to benefit both companies’ loyalty members.
- Marriott Bonvoy members will be able to earn and redeem points for stays at all 17 MGM Collection with Marriott Bonvoy properties, the majority of which are located in Las Vegas. The properties will be available to book on Marriott.com and the Marriott Bonvoy mobile app. Members of MGM Rewards will be eligible to link accounts with Marriott Bonvoy to receive select member benefits.
- Through the strategic partnership, Marriott will grow its limited presence in Las Vegas, a city that has seen strong demand from both leisure and business travelers visiting for sporting events, gambling and conferences.
Dive Insight:
With MGM Collection with Marriott Bonvoy — representing more than 40,000 rooms along the Las Vegas Strip and around the U.S. — Marriott will increase its global room distribution by 2.4%, Anthony Capuano, president and CEO at Marriott, said in a release.
Marriott currently operates several hotels in Las Vegas, with only a handful along the Strip. Twelve Las Vegas properties will join MGM Collection with Marriott Bonvoy, including Vdara Hotel & Spa, MGM Grand Hotel & Casino, NoMad Las Vegas, The Signature at MGM Grand, Mandalay Bay Resort and Casino, New York-New York Hotel & Casino, Luxor Hotel and Casino, and Excalibur Hotel & Casino.
Four of the properties will be affiliated with existing Marriott collection brands. The Bellagio Resort & Casino, which is currently undergoing a $110 million redesign, will join The Luxury Collection. Additionally, Aria Resort & Casino will join Autograph Collection, Park MGM will become part of Tribute Portfolio and The Cosmopolitan of Las Vegas will continue its affiliation with Autograph Collection.
Outside of Las Vegas, MGM’s newly renovated Borgata Hotel Casino & Spa Water Club in Atlantic City, New Jersey, will join MGM Collection with Marriott Bonvoy, along with properties in Mississippi, Michigan, Maryland and Massachusetts.
The partnership comes after MGM Resorts posted record Q1 growth in Las Vegas, with its resorts along the Strip reporting adjusted property EBITDAR of $836 million, up 41% from the prior year’s Q1 earnings.
During an earnings call, Bill Hornbuckle, president and CEO of MGM, attributed the record growth to Las Vegas’ hosting of major sporting events like the NCAA’s Sweet Sixteen and March Madness. On the call, MGM CFO Jonathan Halkyard noted an uptick of gamers 65 years and older returning to the city also likely played a part in the strong performance.
Marriott has also entered into a loyalty marketing agreement with MGM’s online gaming and sports betting joint venture, BetMGM. Under the agreement, Marriott Bonvoy will become BetMGM’s exclusive hospitality loyalty program partner in the U.S. and Canada, enabling its members to earn points on select BetMGM transactions, and participate in exclusive games, experiences and offers. On the flip side, BetMGM Rewards members will be able to exchange their points into Marriott Bonvoy points.
In addition to leisure demand, Las Vegas attracts group demand from conferences and other business travel. “You could argue that Las Vegas is the most interesting group destination in the US,” Capuano told Bloomberg.
Other major happenings set to drive tourism to Las Vegas include Bally’s bringing MLB team the Oakland Athletics’ ballpark on a portion of the 35-acre Tropicana Las Vegas casino resort and Caesars Entertainment adding a $100 million tower to Paris Las Vegas.
