Marriott and MGM Resorts International announced a partnership on Monday to link their loyalty programs to give customers even more options to redeem.
Under the deal, MGM guests in the U.S. can earn Marriott Bonvoy Rewards points, and Bonvoy members can use points at 17 MGM properties.
The 40,000 rooms at MGM will add 2.4 percent to Marriott International’s global portfolio.
The partnership aims to capitalize on frequent travelers or business travelers, who can be very loyal to certain hotel brands, in an effort to earn rewards. These loyalty programs drive business and help differentiate themselves from competitors as the travel industry continues to rebound from the pandemic’s pause.
“The value is in the quantity and quality of the customers,” MGM Chief Executive Bill Hornbuckle said in an interview with CNBC on Monday.
Bonvoy has over 180 million members. If members want to use their rewards points to stay on the Strip, their only hotel option right now is the Cosmopolitan, which MGM will acquire in 2022.
When the new partnership launches this fall, Bonvoy members will be able to redeem rewards at 12 additional resorts on the Las Vegas Strip and five more MGM Resorts nationwide.
Marriott CEO Tony Capuano said MGM Resorts brings to its portfolio a wealth of intellectual property as well as entertainment, high-end dining options and other one-of-a-kind experiences.
“This is really an exciting opportunity for our members,” Capuano said.
Capuano said last month that the global hotel chain had raised its revenue per available room forecast based on a 26 percent growth in group business this year.
The meetings business has yet to fully recover from the low point of the Covid-19 pandemic. Still, the conference schedule is packed and there is optimism that increased group business, as well as international visits, could drive results higher.
Las Vegas is one of the top destinations in the United States for meetings, conventions and conferences.
When asked if the Bonvoy plan would give MGM a leg up in the conglomerate’s business relative to competitors such as Caesar“The answer is an absolute, unequivocal yes,” Hornback said.
Meanwhile, casinos face tough year-over-year comparisons in the second half of 2023, and a tie-up with Marriott could give MGM a competitive edge in its sports betting business, BetMGM, which is jointly owned by Include.
MGM Sportsbook customers will earn Bonvoy Points on certain transactions, and Bonvoy members will see MGM Sportsbook marketing on the Marriott website.
In a press release announcing the deal, BetMGM CEO Adam Greenblatt said it will create a “truly powerful rewards program that connects our players and Marriott guests to the full BetMGM omnichannel experience.”
— CNBC’s Dawn Giel, Jessica Golden and Kasey O’Brien contributed to this report.
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