Four MGM properties joined Marriott soft brand collections , including ARIA Resort & Casino in Las Vegas , part of Marriott ’ s Autograph Collection , and Bellagio , a Luxury Collection Resort & Casino , Las Vegas .
STRATEGY
HOWDY ,
PARTNER
LODGING COMPANIES TO MANAGEMENT COMPANIES ARE TURNING TO PARTNERSHIPS OVER STRAIGHT M & A .
By DAVID EISEN
Sometimes , it ’ s better to rent or lease than to straight out buy . In homes and cars , yes — what about in the hotel business ?
A movement is afoot , one where hotel companies — from brands to operators — are not acquiring companies straight out ; rather , they are forming strategic partnerships or alliances that can prove beneficial and come without the hefty price tag .
At its most basic , a strategic partnership is typically something engaged in over a long-term period and which is mutually beneficial between two or more companies with complementary or overlapping products or services . Consider Marriott International : In July 2023 , it announced a long-term strategic licensing agreement and the creation of MGM Collection with Marriott Bonvoy , encompassing 16 MGM resorts and representing more than 40,000 rooms in Las Vegas and other cities across the U . S . In short , the Marriott deal , which took effect in March 2024 , enables members of MGM Rewards and Marriott Bonvoy to link accounts and receive an assortment of benefits .
VIVA LAS VEGAS In the case of Marriott
22 hotelsmag . com July / August 2024