BIG NEWS: Marriott buys Starwood!

Big news today on the hotels front, is that Marriott is buying Starwood in a cash plus stock deal, making it the biggest hotel company in the world. This is after reports in the last few weeks around various players - including two different Chinese companies, as well as Hyatt - being possible buyers. All of that is now closed. Marriott will now own Starwood, involving a legal process that is expected to be completed by mid-2016.

I'm sure this is exciting news for many of you out there, especially those who favour the Marriott Rewards program over SPG. I can't disagree. I've mentioned in the past about how Marriott Rewards is possibly the best hotel rewards program in India. To my mind, SPG always came out as a #2 or #3, mainly because of the relatively high earn-to-burn ratio that SPG Starpoints offers.

SPG fans must be riled at this announcement. To be fair, internationally, SPG scores far better that Marriott, if the bloggers at BoardingArea are any indication! Marriot's acquisition means that SPG lovers may well find their SPG elite benefits disappearing, or at least being heavily diluted. In particular, SPG's transfer benefit to partner airlines (which included a 25% bonus if you transferred in multiples of 20,000 SPG Starpoints) was a great benefit that my no longer be available. Not to mention credit card signups!

However, we need to acknowledge that the Indian context is quite different. The absence of hotel co-branded credit cards means that the only way you can really earn Starpoints (or MR points for that matter) is the good old way - by staying at hotels. By that single yardstick, I believe Marriott scores over SPG, at least in India.

Implications on the respective loyalty programs

Coming back to our area of specific interest around the MR and SPG programs, I would imagine that the integration will take time (though not as long as US Airways and American did). Overall, SPG offers better value (internationally) both for Starpoints as well as for being an elite member, compared to Marriott Rewards. 

There are a a lot of differences between the two programs, that will need to be ironed out and parity achieved. Because of this, I expect that there will be a more-than-insignificant revamp of the MR program, to better accommodate (read: retain) SPG members within the new structure. I don't see the reverse (ie, MR program being incorporated into the SPG program) really happening, but you never know.

There is, of course, the outside possibility that both programs (and brands) could continue operating independently (much like Marriott Rewards and Ritz-Carlton), with an option being given to the guest as to which program they'd like to identify each stay with.

Interesting times ahead!

What do you think of this acquisition, and how do you think it will affect your approach to staying at hotels, earning MR points, and elite status? Or will you shift loyalties to Hilton or Hyatt, instead?

Update: Also read More thoughts on Marriott acquiring Starwood