MGM Resorts and Marriott International announced a new 20-year licensing agreement on Monday that includes the creation of MGM Collection with Marriott Bonvoy brand.
Marriott now earns a major presence in Las Vegas and also expands the offerings for the company’s rewards members. The Bonvoy brand will include 17 MGM resorts, representing more than 40,000 rooms in Las Vegas and other cities.
The move comes after MGM recently ended a similar agreement with Hyatt. MGM previously had an agreement with Marriott at The Cosmopolitan in Las Vegas after acquiring the property in 2022.
“This historic, long-term agreement brings together two of the most trusted and iconic brands in hospitality and entertainment,” MGM President/CEO Bill Hornbuckle said. “We’ve seen first-hand the strong demand from Marriott International customers through our existing relationship at The Cosmopolitan of Las Vegas, and this new agreement will enable us to further optimize our overall profitability.”
Details on the MGM-Marriott Licensing Agreement
The agreement expands Marriott’s portfolio of properties while also allowing customers to book stays at MGM properties on Marriott’s digital platforms. That includes the MGM Collection with Marriott Bonvoy resorts beginning in October. All MGM properties are expected to be available for online booking via Marriott by the end of the year.
“We are excited to make MGM Resorts’ incredible properties available on Marriott channels, allowing our members to enjoy Marriott Bonvoy benefits when they stay at MGM Collection with Marriott Bonvoy resorts,” Marriott International President/CEO Anthony Capuano said.
The agreement is expected to benefit members of both companies’ loyalty programs. MGM Rewards has 40 million members who can link accounts with Marriott Bonvoy and receive select member benefits. Members of Marriott Bonvoy, which has over 180 million members, can earn and redeem points for stays at all MGM Collection with Marriott Bonvoy properties.
Marriott is based in Bethesda, Maryland, and operates more than 8,500 properties under 31 brands in 138 countries and territories. With MGM, the company is adding to its global hotel rooms distribution by 2.4%. Company officials are pleased to see its presence on the Las Vegas Strip expand as well as in other destinations around the country
Joining Marriott’s Hotel Brands, Adding Sports Betting Partnership
Four of MGM’s Las Vegas casinos will now not only be linked to Marriott, but also join some of the hotel corporation’s exclusive brands. Here’s a look at those properties and how they will now be recognized within the greater Marriott portfolio:
- Bellagio Resort & Casino – The Luxury Collection
- Aria Resort & Casino – Autograph Collection
- Park MGM – Tribute Portfolio
- The Cosmopolitan – continues as part of the Autograph Collection
Eight MGM resorts in Las Vegas will join the MGM Collection with Marriott Bonvoy including: Vdara, MGM Grand, NoMad Las Vegas, The Signature at MGM Grand, Mandalay Bay, New York-New York, Luxor, and Excalibur. Five additional properties also join MGM/Marriott Bonvoy including: Borgata (New Jersey), Beau Rivage (Mississippi), MGM Grand Detroit (Michigan), MGM National Harbor (Maryland), and MGM Springfield (Massachusetts).
Beyond the hotel angle, the two companies have also entered into a loyalty marketing agreement with BetMGM, MGM Resorts’ online gaming and sports betting venture. Marriott Bonvoy will become BetMGM’s exclusive hospitality loyalty program partner in the U.S. and Canada.
Bonvoy members can earn points on certain BetMGM transactions and participate in exclusive games, experiences, and offers. BetMGM members can convert rewards points into Marriott Bonvoy points.
Reactions from the Industry
Analysts in the industry offered a positive reaction to the agreement with Marriott. The company is significantly larger than Hyatt and offers a major boost for MGM via Marriott’s massive loyalty program according to Michael Bellisario, a senior research analyst for the Baird financial services firm.
“Put on your MGM hat,” Bellisario told Forbes. “Bigger is better when you think about scale and distribution and global reach. That’s what Marriott has over Hyatt.
“Marriott Bonvoy is the brand. It’s not Marriott’s 31 — now maybe 32 — different hotel brands. It’s the Marriott Bonvoy platform and its 180 million members. That’s the value of the business. Marriott also just happens to be a hotel company, hotel franchisor and manager.”
Some analysts note that the move shows Marriott’s commitment to the Las Vegas market and the rebound the city has seen since COVID-19. In May, visitors to the Strip grew by 1.5% year over year to 3.5 million, according to the Las Vegas Convention and Visitors Authority (LVCVA). The coming year sees Vegas hosting several major sporting events including a Formula 1 race and the 2024 Super Bowl.
“We are bullish on further Vegas growth,” Macquarie Group analyst Chad Beynon told Yahoo Finance. “We think the return of conventions and a strong sports/event calendar over the next couple of years should provide some level of support for Strip GGR (gross gaming revenue) and non-gaming revenues.”
