Marriott buys Starwood for $12bn
#61
Join Date: Nov 2009
Location: 6km East of EPAYE
Programs: UA Silver, AA Platinum, AS & DL GM Marriott TE, Hilton Gold
Posts: 9,582
Well as a Marriott only person, I am interested in seeing some new properties when this thing is complete ^
#63
Join Date: Nov 2007
Location: halfway between JFK and LGA
Posts: 976
solely from a loyalty program-destroying perspective, this is the apocalypse. in my opinion as a four-day-a-week traveler, there was only one lodging decision to make: marriot vs. spg. competition kept both programs pretty darn good, based on what your needs were. now that there will be one, this is all going to collapse. there is no one that can compete with the marriott/spg monolith.
#64
Join Date: May 2009
Location: PHL
Posts: 2,842
This is pretty crazy since both hotels generally have the largest portfolio of hotels in major cities. In PHL, which frankly lacks some major brands, there would be ~10 "Marriott" hotels in the major business district and airport. How is that competitive against any other hotel chain.
#65
Join Date: May 2002
Programs: AAdvantage Platinum, United Silver, Marriott Titanium Elite
Posts: 2,276
solely from a loyalty program-destroying perspective, this is the apocalypse. in my opinion as a four-day-a-week traveler, there was only one lodging decision to make: marriot vs. spg. competition kept both programs pretty darn good, based on what your needs were. now that there will be one, this is all going to collapse. there is no one that can compete with the marriott/spg monolith.
However, this merger will lead to more consolidation in the hospitality industry. Hilton will undoubtedly merge with one or more other large players to be a formidable competitor to the new Marriott.
And, even when there are not full mergers of hospitality companies, there are opportunities to combine loyalty programs or honor each other's programs.
We'll probably wind up with three or four large loyalty programs in the hospitality business.
The airline industry has already done this. Think about the global alliances and the domestic airline consolidation in the United States.
Hospitality is next. The rest of the industry will make an effort to "compete with the marriott/spg monolith." The alternative is to left in the dust.
#66
FlyerTalk Evangelist
Join Date: May 2012
Location: MCO
Programs: AA, B6, DL, EK, EY, QR, SQ, UA, Amex Plat, Marriott Tit, HHonors Gold
Posts: 12,809
I personally hope the DOJ blocks this.
Airline mergers have shown us a pretty steep decline in product, customer service, and competition overall. The same trend does not need to make its way into the hotel industry.
As an active member in both programs, I would much prefer to see them remain independent competitors.
Airline mergers have shown us a pretty steep decline in product, customer service, and competition overall. The same trend does not need to make its way into the hotel industry.
As an active member in both programs, I would much prefer to see them remain independent competitors.
#67
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
there is not really any reason to block it
- there are larger franchise companies, including wyndham
- hotels are not like airlines, and its international
- compare number of airlines to number of hotel companies
- starwood is not huge
- probably 'most' of starwood does not overlap
pritzkers wont sell hyatt to hilton
- there are larger franchise companies, including wyndham
- hotels are not like airlines, and its international
- compare number of airlines to number of hotel companies
- starwood is not huge
- probably 'most' of starwood does not overlap
pritzkers wont sell hyatt to hilton
#68
Join Date: Jan 2011
Location: YVR to SEA
Posts: 2,535
Hilton partners with Citi and Amex.
It's not out of the question to expect Marriott to partner with Chase and Amex
It's not out of the question to expect Marriott to partner with Chase and Amex
#69
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Potomac Falls, VA
Programs: AA Plat 2MM, MR Gold, Avis Pref
Posts: 41,109
I think I'm in the minority here as I'm very happy with this although the devil is in the details and ask me again once all the changes are announced
First: I'm LT Gold (200K points only away from LTP with MR); 9 stays away from LT G with SPG. Currently no status with SPG but was a long time Plat and loved SPG as a plat. Don't really like SPG if not plat. MR on the other hand treats golds very well and of course IMHO treats plats very well. - Early returns - Win for me in this merger/takeover
Second: Points ~500K MR; ~160K SPG I know I won't get a favorable exchange rate but having more MR fits my lifestyle better than the SPG points ever would - early returns Win for me
Third: Properties - way more to choose from now especially in places I frequent - win for me
Fourth - I don't travel a ton now but hope to in about four years after the kids are both in college. At that point I'll be chasing multiple chains for top tier - this just eliminates one chain (saving me 25 nights) that I normally would be chasing - win for me
Fifth - Starwood Lurker - that guy is a godsend (as well as other SPG forum employees) and if he doesn't stay on (and the others) - loss for ALL of us
so in the end the early returns have e LOVING this merger/take over
as for the DOJ blocking this; yeah right LOL, play the lotto you have better odds
First: I'm LT Gold (200K points only away from LTP with MR); 9 stays away from LT G with SPG. Currently no status with SPG but was a long time Plat and loved SPG as a plat. Don't really like SPG if not plat. MR on the other hand treats golds very well and of course IMHO treats plats very well. - Early returns - Win for me in this merger/takeover
Second: Points ~500K MR; ~160K SPG I know I won't get a favorable exchange rate but having more MR fits my lifestyle better than the SPG points ever would - early returns Win for me
Third: Properties - way more to choose from now especially in places I frequent - win for me
Fourth - I don't travel a ton now but hope to in about four years after the kids are both in college. At that point I'll be chasing multiple chains for top tier - this just eliminates one chain (saving me 25 nights) that I normally would be chasing - win for me
Fifth - Starwood Lurker - that guy is a godsend (as well as other SPG forum employees) and if he doesn't stay on (and the others) - loss for ALL of us
so in the end the early returns have e LOVING this merger/take over
as for the DOJ blocking this; yeah right LOL, play the lotto you have better odds
#70
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,570
The competitive landscape isn't as dire to me as it is when airlines merge. If I'm traveling to, say, Chicago, there are still the same number of hotels downtown competing for my business based on a demand curve driven mainly by total travelers and total hotel rooms. There are still many individual hotel operators who want to fill their rooms, competing against other nearby operators regardless of what flag they're flying.
It's not like Marriott is going to rapidly constrict capacity in a city the way airlines sometimes have when they assume a monopoly position in an airport.
On the hotel operator side, there will still be Hyatt, Hilton, IHG, and a couple others competing for franchisees.
Yes, SPG-Marriott is a big monster, but if the DOJ was cool with CO-UA, do you really think they're going to block this? These players aren't nearly big enough in the EU to create problems there.
It's not like Marriott is going to rapidly constrict capacity in a city the way airlines sometimes have when they assume a monopoly position in an airport.
On the hotel operator side, there will still be Hyatt, Hilton, IHG, and a couple others competing for franchisees.
Yes, SPG-Marriott is a big monster, but if the DOJ was cool with CO-UA, do you really think they're going to block this? These players aren't nearly big enough in the EU to create problems there.
#74
Join Date: May 2002
Programs: AAdvantage Platinum, United Silver, Marriott Titanium Elite
Posts: 2,276
These days, the major hotel companies own brands, not hotels. They franchise, manage, and market.
As guests, we seldom know if a Marriott-branded hotel is managed by Marriott or is a franchise. In either case, the hotel is not owned by Marriott.
You might have a half dozen hotels of various Marriott and Starwood brands near each other, with each owned by a different REIT or hotel company. Meanwhile, REITs and hotel companies often have portfolios of properties that span across numerous brands.
You still have plenty of other brands and plenty of independent hotels or local chains. Unlike the airline industry, the barrier to entry for new players is low.
I don't expect the DOJ to step in.
I agree. But I think that ship has sailed.
#75
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Potomac Falls, VA
Programs: AA Plat 2MM, MR Gold, Avis Pref
Posts: 41,109
I apologize since I wasn't very clear
I meant to say
I am no status at SPG right now; I don't like SPG without status as I don't feel I'm treated very well so I don't use them at all - Not a complaint as I don't expect anything without status but otoh, I am not going to stay where I don't like what I receive even if its all that I'm entitled too.
At MR, I'm LT gold; I don't do enough travel these days to earn the gold status annually but luckily once upon a time I traveled a ton, have LT Gold so I get the gold benefits which are adequate to me; Hence by bringing SPG under the MR umbrella, I'll eventually be able to use that LT MR Gold for my own personal gain at the current SPG properties; hopefully I'll be LT plat by the time that comes around as well (200K more points and I do have the MR Chase CC)
I win in that situation