FlyerTalk Forums - View Single Post - Starwood: "Marriott and Starwood stockholders approve merger"
Old Mar 25, 2016, 4:23 pm
  #2945  
dewdreamdawn
 
Join Date: Jun 2015
Location: District of Columbia
Programs: SPG Plat, Hyatt Diamond, Hilton Diamond (SM), Asiana Diamond.
Posts: 45
Originally Posted by Troopers

Quote:
However, a lot of those costs are paid by the hotels anyway, not corporate.

False.
According to Starwood v. Parker case, hotels have to purchase Starpoints from Preferred Guest, Inc. ("PGI sells Starpoints to SPG participating hotels and partners,") So my understanding is that the Starpoints that hotels give to the customers are not free, and in fact they have to purchase it from PGI which I assume a part of Starwood.

So the costs are indeed paid by the hotels at least partly. Of course hotels do get reimbursement when SPG members stay with points, but they get pretty low amount of money, unless the Occupancy Rate is >95% when the reimbursement is at the ADR.
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