[2015] Marriott to acquire Starwood hotels

[VacationForever]

I own boatloads of MRP and SPG points. The ratio is different in value but I don't value one system over the other. I have both credit cards and enjoy staying at both brands. I am just very surprised by many posts here implying that Starwood is somewhat superior to Marriott. Quality is independent at each hotel and timeshare. I love JW Marriott (hotels) for many years before I came to accept Westin as being as good and my husband was the other way around. He now strongly prefers Marriott as a brand, hotel and timeshare. My experience at Marriott (timeshare) in Maui and Kaui was far better than Westin, so much so that I vouch never to return to the 2 Westin resorts there.

 

[Ken555]

One of their biggest competitors is the Hilton family that made a huge devaluation of their program. Since Starwood and Marriott will no longer have to compete against each other, I see this as a good indication a devaluation of Star Points is likely if not certain since they can devalue less than Hilton and still have a better program to retain customers.



Cheers

^^ THIS


Sent from my iPad

 

[Ken555]

Marriott to acquire Starwood hotels

My experience at Marriott (timeshare) in Maui and Kaui was far better than Westin, so much so that I vouch never to return to the 2 Westin resorts there.

The Maui Westin's are my favorite resorts in the program. In fact, the only better timeshare I've visited is Four Seasons. I haven't yet been to the Marriotts on Maui, but have been to many others and they are all inferior to the Westin product...I have heard that the Maui Marriots are nice, tho.


Sent from my iPad

 

[Ken555]

The fact that so many of you are talking about taking so much of your business elsewhere if SPG is significantly devalued is precisely the reason why I believe Marriott will be judicious in how they redesign the points program. Marriott didn't give up 38% of the company to simply go and piss off all the Starwood customers. I'm sure there will be changes and Marriott will be looking out for its bottom line, but the assumption that "devaluing points = more revenue" is overly simplistic and likely inaccurate. As others have pointed out, this isn't an airline and Marriott will have dozens of competitors across its markets... not to mention thousands of franchisees whose livelihoods will be affected if Marriott chases away Starwood's most loyal former customers.

Summarizing scenarios as simplistic is what I do!

However, I don't think there are dozens of similar competitors in scope and presence as Marriott and Starwood.


Sent from my iPad

 

[dsmrp]

Sandra, this is excellent. Thank you for sharing.

You're welcome, glad a few people at least liked it
I might finish out the rest of the verses late next year or 2017, depending upon what solidifies out after the sales are final.

IMO, I feel there will be some decrease in value for SPG pts whether converted to Marriott points or kept in name as 'spg'.
If major changes are made, I think Marriott would implement in phases if they can, rather than go big-bang, so as not to rile spg members.

It would be much more telling to know how many spg points are outstanding, that is, not yet redeemed, and what percentage of the hotels' occupancy redeemed points represent. But can't know, these are part of the proprietory knowledge Marriott will get or maybe has gotten in their pre-agreement analysis.

 

[pedro47]

Starwood owners should be happy, Marriott is a first class organization.

 

[BigBC]

I think this is the correct view. Interval won't keep access to SPG for Starwood Vacations Club over the long haul from my perspective. MVC won't allow Marriott to service the needs of a competitive product. My guess is that Interval will have to replace SPG benefits for Starwood Vacations Club with something else down the road. Certainly will devalue my Starwood ownership as I use SPG alot.

 

[Ken555]

Starwood owners should be happy, Marriott is a first class organization.

Unfortunately, not all their hotels are first class.


Sent from my iPad

 

[okwiater]

I think this is the correct view. Interval won't keep access to SPG for Starwood Vacations Club over the long haul from my perspective. MVC won't allow Marriott to service the needs of a competitive product. My guess is that Interval will have to replace SPG benefits for Starwood Vacations Club with something else down the road. Certainly will devalue my Starwood ownership as I use SPG alot.

This is nonsense. MVC is a separate company from Marriott and will have no say in the SVO-ILG/Marriott relationship.

 

[VacationForever]

Unfortunately, not all their hotels are first class.


Sent from my iPad

Marriott has multiple levels of hotels, just like Starwood. Four points is very substandard. You need to compare Westin with JW Marriott.

 

[Ken555]

Marriott has multiple levels of hotels, just like Starwood. Four points is very substandard. You need to compare Westin with JW Marriott.

I've been to many very nice Four Points (especially in Europe, though I was at a new one just a few weeks ago in the States). I've also been to a few that have been rebranded and have a lot to be desired.

I've also been to many, many Marriott hotels (of various brands). There's a reason I prefer Starwood. JW is quite nice, Marriotts are generally okay, etc. I think it's interesting that you think JW is equivalent to Westin, since I always thought JW was better (I haven't stayed at a JW in years, though I've been to many...latest in Scottsdale when I stayed at Canyon Villas).

I'm not a hotel snob. I don't need the best. I've been very critical of some Starwood hotels over the years, but I've had much better results - in general - from Starwood than Marriott.

And then there's the comparison of the loyalty programs...and Marriott doesn't come close to the benefits, for me, as SPG did. Oh, well. Nothing lasts forever.

 

[SMHarman]

This is nonsense. MVC is a separate company from Marriott and will have no say in the SVO-ILG/Marriott relationship.

I concur as I said earlier the SVO/ILG contract surely has a points program affinity for the duration of the branding affinity. Further it surely has a successor clause.

Unless Marriott just shut down SPG the Marriott Rewards is the successor.

I don't see car Hire companies etc looking for points cobrand exclusivity.

 

[YYJMSP]

This is nonsense. MVC is a separate company from Marriott and will have no say in the SVO-ILG/Marriott relationship.

It comes down to what is in the "long term" agreements between SVO/VSE and HOT for access to SPG and how they survive HOT's sale to MAR.



I would think there are clauses to handle buyout situations like this.



Too bad we can't see the actual agreements.



Worst case they only guarantee access to the brand names Westin and Sheraton. Best case they cover ongoing access to trading VOIs for hotel points and some kind of status.

 

[vistana101]

I certainly hope we will be able to maintain elite status and have point conversions. Even though they are not the best value, I often find myself unable to use a villa week and the point conversions have been very helpful. Hopefully we will have clear updates and information by the end of 2016.

 

[MichaelColey]

Personally, I think some consolidation of brands is inevitable. Marriott currently has 19 different brands. Starwood has about a dozen. Do they really need/want THIRTY different brands of hotels? It would make a lot of sense to combine the similar ones and choose the strongest name (and maybe add "by Marriott") to go forward.

 

[Scott & Laura]

I agree that a consolidation would be in order.

It will take years to complete as Marriott and Starwood have shifted away from property ownership in order to become the property managers for others.

Marriott and Starwood offer a branded image and, in cases were Marriott and Starwood offer a similar Hotel experiences the merger under a single name would make sense.

However since the hotels are owned by others which they manage, those legal agreements become subject to the owners to determine if they wish to stay or switch to another company outside Starwood or Marriott to manage.

In any event changes would have to be accepted by the owners before anything could be done and I assume they will be addressed as management agreements come due and are either extended or cancelled over next few years


Scott

 

[okwiater]

So which brands would you consolidate? Luxury Collection & Autograph are I think the most obvious but I am sure there are others. Which ones overlap to the point where merging them into one or the other is likely to be a minimal expense for the hotel owner and likely not to alienate any significant number of either brand's target customers?

 

[jnsywg]

My guess is that within five years the "Delta" brand is gone from Canada. Most of the "Delta" hotels will convert to Sheraton or Marriott with some dropping to Courtyard or other. To keep the hotel owners happy this will be timed to coincidence with regular renovation cycles.

 

[Scott & Laura]

Anything I would suggest at this time would be merely speculation on my behalf.
It's above my pay grade.

When Marriott's purchase agreement is finalized, I am sure they will review all the Hotel's Guests expectations and then decide what are the goals each brand is trying to achieve and what services or experiences are they trying to provide to guests. .They will also have to meet with the Hotel owners and determine if everything meets their needs and expectations. They certainly don't want to lose Hotel owners unless the owners are unwilling to maintain properties.

They would then have to shape and focus each brand and where brands are able to offer the same experience I think they would create a singular brand in order to reduce management and costs.

This will take years as they have existing contracts with the Hotel owners already in place.

Scott

 

[SueDonJ]

from news.marriott.com:

"Marriott’s Acquisition of Starwood Receives Antitrust Approval in China; Marriott and Starwood Expect to Become Combined Company on September 23

Marriott International, Inc. (NASDAQ: MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced their merger transaction has received approval from the Chinese Ministry of Commerce (MOFCOM). As this was the last regulatory approval required to complete the merger, Marriott and Starwood are now able to proceed with closing the transaction and expect the transaction to be completed before the market opens on September 23, pending satisfaction of customary closing requirements. Upon closing, Marriott will solidify its status as the world’s largest hotel company.

In conjunction with the merger closing, Starwood expects its shares will cease trading on the New York Stock Exchange before market open on September 23, 2016. As previously announced, Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott International, Inc. Class A common stock for each share of Starwood Hotels & Resorts Worldwide, Inc. common stock. ..."