Marriott has raised $920 million by pre-selling Marriott Bonvoy points.
We recently covered how Hilton had raised $1 billion by pre-selling Hilton Honors points to American Express for, presumably, a large discount on the standard price.
Marriott has now done the same. It has sold $920 million of Marriott Bonvoy points to American Express ($350 million) and JP Morgan Chase ($570 million, of which $70 million is the early payment of an agreed fee). Both issue Bonvoy-branded credit cards, like the funky one below.
As part of the deal, Marriott agreed to extend its agreement with both companies for an unspecified additional period. Both contracts expire at the same time, leaving Marriott with the option of bringing its entire credit card operation under one roof at some point in the future.
These deals are generally a win for everyone concerned.
Marriott has raised a substantial amount of money via a route which is quicker and easier than raising a similar sum via bank debt. It should also have only a small impact on Marriott’s ability to raise additional bank debt in the future.
Amex and Chase, neither of whom are short of cash, will have been happy to pay $920 million now rather than, potentially, $1.25 billion over the next five years. It represents an attractive rate of return. Getting an extension to their existing credit card contract on top is the icing on the cake.
How to earn Marriott Bonvoy points from UK credit cards (January 2021)
There are various ways of earning Marriott Bonvoy points from UK credit cards. Many cards also have generous sign-up bonuses!
You can also earn Marriott Bonvoy points by converting American Express Membership Rewards points at the rate of 2:3.
Do you know that holders of The Platinum Card from American Express receive FREE Marriott Bonvoy Gold Elite status for as long as they hold the card? It also comes with Hilton Honors Gold, Radisson Rewards Gold, Shangri-La Golden Circle Jade and MeliaRewards Gold status. We reviewed American Express Platinum in detail here and you can apply here.
You can also earn American Express Membership Rewards points with American Express Gold (20,000 bonus points), the American Express Rewards Credit Card (5,000 bonus points) and – for small business owners – American Express Business Gold (20,000 bonus points) and Business Platinum (40,000 bonus points).
(Want to earn more hotel points? Click here to see our complete list of promotions from the major hotel chains or use the ‘Hotel Promos’ link in the menu bar at the top of the page.)