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Marriott And MGM Resorts International announced a partnership on Monday to link their loyalty programs and give customers more options for making money.
Under the deal, MGM guests in the United States will be able to earn Marriott Bonvoy reward points, and Bonvoy members will in turn gain access to 17 MGM properties when they spend their points.
MGM’s 40,000 rooms will increase Marriott’s global offering by 2.4%.
The partnership seeks to capitalize on frequent or business travelers, who can be very loyal to certain hotel brands in an effort to reap rewards. Those loyalty programs drive sales and help differentiate competitors as travel continues to recover from a pandemic lull.
“The value is in the quantity and the quality of the customer,” Bill Hornbuckle, CEO of MGM, said in an interview with CNBC Monday.
Bonvoy has more than 180 million members. If they want to use their rewards points to stay on the Las Vegas Strip, their only hotel option is currently the Cosmopolitan, which MGM bought in 2022.
When the new partnership kicks off this fall, Bonvoy members will be able to redeem their rewards at 12 additional resorts on the Strip and five other MGM resorts across the country.
Marriott CEO Tony Capuano said MGM Resorts adds a wealth of intellectual property to the portfolio, as well as entertainment, high-end culinary options and other unique experiences.
“It’s a really exciting opportunity for our membership,” Capuano said.
Capuano said last month that the global hotel chain increased its revenue per available room forecast based on a 26% increase in group activity this year.
The convention business has yet to fully recover from the lows of the pandemic. Still, the conference calendar is packed, and there is optimism that group activities, along with increased international attendance, could boost results.
Las Vegas is one of the top destinations in the United States for conventions, conferences and meetings.
When asked if the Bonvoy program would give MGM a competitive advantage in group business over competitors such as Caesarssaid Hornbuckle, “The answer is an absolute, unequivocal yes.”
Casinos, meanwhile, face tough year-over-year comparisons for the second half of 2023, and the partnership with Marriott could give MGM a competitive advantage in its sports betting business, BetMGM, co-owned by entertain.
MGM’s sportsbook customers earn Bonvoy points on some transactions, and Bonvoy members see MGM sportsbooks marketing on the Marriott site.
BetMGM CEO Adam Greenblatt said in a press release announcing the deal that it will create a “truly robust rewards program that connects our players and Marriott guests with the full BetMGM omnichannel experience.”
– CNBC’s Dawn Giel, Jessica Golden and Kasey O’Brien contributed to this report.