Customers promised more points after deal

Marriott International Chief Executive Officer Arne Sorenson said hotel customers would get "more and more points" as a result of its $12.2 billion acquisition of Starwood Hotels & Resorts Worldwide.

The deal "will be hugely positive for consumers," said Sorenson on Nov 17 in an interview on Bloomberg Television. He didn't provide further details on how the companies' loyalty programs will be managed.

Sorenson emphasized the importance of maintaining customer loyalty as it creates the world's largest lodging company. Starwood's popular rewards program was part of what made the acquisition attractive, Sorenson said during a conference call to discuss the deal with investors.

The combined company will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. The properties are operated under 30 brands, including Marriott's Ritz-Carlton, Courtyard and SpringHill Suites, and Starwood's W, Westin and St. Regis.

Scale is becoming more important as online travel services make it easier for travelers to book rooms and Airbnb eats into hotel revenues by enabling people to rent out private homes. However, the vast majority of people still prefer to stay in hotels rather than apartments, Sorenson said during the TV interview.

Marriott International's purchase of Starwood Hotels & Resorts Worldwide will give the combined company 30 hotel brands, double its next-largest competitor, an abundance that presents integration challenges for the biggest operator in what is a fast-changing industry.

"While our thinking is quickly evolving, we expect Starwood brands to remain in place," Sorenson said.

"We can meaningfully accelerate growth in many of Starwood's brands, particularly in the upscale segment."

(China Daily 11/21/2015 page10)