Most of you have probably already heard the news that Marriott has acquired Starwood (SPG). The first step of combining the loyalty programs has now begun: points can be transferred between the two programs, and elite status can also be matched between them. In this post, we’ll look at how the merger affects us, and how to plan your points strategy and credit card applications going forward.

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[Update 7/25] Marriott, SPG, and Ritz-Carlton Rewards will officially merge on August 18. The key details are as follows:

  • Award bookings: Before August 17, hotel award bookings will still price according to the original category chart. If you book a hotel and the required points go up after the merger, you will not be charged the difference. If the required points go down, the difference will not be refunded automatically; you will need to contact customer service to get it back. This also applies to hotel certificates from Marriott Hotel + Air Packages.
  • Points: Points will still be transferable among the three programs, but after the merger there will only be Marriott points. If you have already linked your Marriott and SPG accounts, any remaining points will be moved to Marriott automatically. If you have not linked them, Marriott may automatically create an account for you, and you may then need to merge Marriott accounts afterward.
  • Elite status: After the merger, SPG elite nights will be added into your Marriott account.
  • Marriott certificates: There is no news yet on how certificates from Marriott Hotel + Air Packages will change. Before August 18, the original packages will still redeem according to the old chart.

[Update 4/23] Marriott announced today new categories for some hotels, along with the point differences before and after the change. Overall, lower-category properties saw both increases and decreases. The most high-end hotels, however, can only go up to Category 7, so they require far fewer points than before. If you’re looking to book top-tier hotels, it may be worth waiting. The new chart will officially take effect on August 1, all based on standard rewards; off-peak and peak pricing will not be introduced until 2019. The chart is here:

Latest Developments in 2018

Because Marriott’s April 16 press release officially revealed the details of the program merger, I’ve directly updated the information and analysis below to reflect the latest version.

Timeline of changes

  • April 16, 2018: Marriott announced the detailed merger plan, including points, elite status, co-branded credit cards, and more
  • August 2018: The programs officially merge, and some changes take effect
  • 2019: Dynamic award pricing takes effect, with off-peak, standard, and peak pricing

Loyalty program changes

After the merger, there will be five elite tiers, with the main benefits as follows:

  • Silver: Requires 10 nights. 10% points bonus.
  • Gold: Requires 25 nights. Late checkout until 2:00 pm, room upgrades up to non-suite rooms, and welcome points at check-in.
  • Platinum: Requires 50 nights. Late checkout until 4:00 pm. At check-in, you can choose one of welcome points, breakfast, or a gift. Lounge access is included. Each year you get 5 Suite Night Awards, or you can choose a gift instead.
  • Platinum Premier: Requires 75 nights. Late checkout until 4:00 pm, room upgrades up to non-suite rooms. At check-in, you can choose one of welcome points, breakfast, or a gift. Lounge access is included. Each year you get 10 Suite Night Awards, or you can choose a gift instead.
  • Platinum Premier with Ambassador service: Requires 100 nights and $20,000 in Marriott spend. Includes ambassador-level service and 24-hour flexible check-in/check-out.

Commentary: The rumors were basically accurate. For people who do not stay at hotels often, these changes do not have a huge impact. The one thing worth noting is that Gold may no longer include breakfast. For those who got SPG Gold through a credit card and then matched to Marriott Gold—which currently comes with free breakfast—this is a pretty big blow. At this point, Platinum seems to be enough to enjoy most of the key benefits, such as lounge access, breakfast, and suite upgrades. So if you can reach Platinum through a combination of credit cards and stays, or through a status challenge, it is still very valuable. Also, SPG used to distinguish between stays and nights, so it was possible to earn status quickly by doing short stays. The new program only counts nights, so now you really have to stay night by night.

In short: stay. In two words: spend money. In three words: spend money staying at hotels.

Lifetime status

I personally don’t think this matters much to me, but here are a few quick comments.

  • Lifetime Silver Elite: 250 lifetime nights + 5 years elite status
  • Lifetime Gold Elite: 400 lifetime nights + 7 years Gold Elite status or higher
  • Lifetime Platinum Elite: 600 lifetime nights + 10 years Platinum Elite status or higher

Commentary: This is good news for frequent business travelers who are on the road year-round. SPG and Marriott will definitely account for a big share of their stays going forward. It is still unclear whether nights stayed in the past can be combined.

Points changes

After the merger, award stays may move to a dynamic pricing model. Under this system, award nights will be priced at Standard, Off-peak, or Peak levels, somewhat similar to BA award tickets. Each hotel category will have three possible price points, though it is still unclear how Marriott will determine those levels. This change will be implemented in 2019.

Commentary: This is different from Hilton’s current approach. Hilton’s award pricing is not fixed, while Marriott is using three defined levels. Marriott also has not explained how those three levels will be assigned. If they are determined dynamically based on cash price, that seems a bit awkward—surely you wouldn’t want to see a room price as off-peak when you search today for next week, then see that same date become peak tomorrow. My guess is that Marriott may define off-peak and peak periods for each hotel based on travel seasons. But Marriott has so many hotels across so many regions that it would be hard to apply one rule across the board. If each hotel is handled separately, that would also be a huge amount of work. So it’s hard to say how they will handle it.

My guess is that, on average, the impact on point value may not be that large; it is more like standardizing redemption values into a narrower range across different regions. But for people who like finding sweet spots, this is a major blow. In the future, you probably won’t see situations where a hotel in an expensive market still sits in a low category and therefore requires relatively few points. In other words, those outsized-value redemptions may disappear.

Points transfers

Marriott was pretty generous here. On August 1, all SPG points will convert to Marriott points at a 1:3 ratio. At the same time, Marriott points can be transferred to airline miles at 3:1. If you transfer 60,000 points, you will receive an extra 5,000 airline miles. This is basically the same model as SPG’s 1:1 airline transfer ratio plus the 5,000-mile bonus for transferring 20,000 points. If this continues, Marriott points should not lose their value.

In addition, Marriott Hotel + Air Packages may see some changes to their redemption chart.

Commentary: I’m not disappointed. The transfer feature I value most has not been devalued. That said, I’d guess Marriott Hotel + Air Packages will most likely be devalued the next time Marriott releases more details.

Credit card changes

What most people care about most is probably the credit card side of this. Before August 2018, existing Marriott/SPG co-branded credit cards would continue under their current structure. After that, the card benefits would change, and new co-branded cards would also be launched. AMEX would issue a premium personal card and a business card, while Chase would issue lower- and mid-tier personal cards.

Chase Marriott Rewards Premier Plus (new card; upgraded version of the current Marriott Premier)

  • Will officially launch on May 3
  • 100,000 welcome bonus, $95 annual fee; 6x points at Marriott/SPG hotels, 2x on all other purchases
  • One free night certificate every year, usable at Marriott hotels costing up to 35,000 points
  • Comes with Silver status; earn Gold status with $35,000 in annual spending; includes 15 elite night credits to help qualify for higher elite status (effective in 2019; multiple SPG/Marriott cards cannot stack)
  • The old Chase Marriott Premier can be upgraded, and should probably also be able to be kept

Chase Marriott Premier (old version; will soon be discontinued and unavailable for new applications)

  • One free night certificate every year for cat1-5, usable at Marriott hotels costing up to 25,000 points
  • Includes 15 elite night credits to help qualify for higher elite status (effective in 2019; multiple SPG/Marriott cards cannot stack)
  • Everything else after August will remain the same as the previous Marriott Premier

Chase Marriott Premier Business (completely overshadowed by the personal version, so not really worth applying for right now)

  • $99 annual fee, waived the first year; 5x at Marriott/SPG, 2x at restaurants, airline tickets, car rental agencies, office supply stores, and internet, cable, and phone services, 1x on all other purchases
  • Includes 15 elite night credits to help qualify for elite status; earn Gold status with $50,000 in spending; earn one elite-qualifying night for every $3,000 spent
  • One free night certificate every year for cat1-5, usable at Marriott hotels costing up to 25,000 points
  • May gain new benefits in August

Chase Marriott Consumer (not worth holding at all)

  • $45 annual fee; 3x at Marriott/SPG, 1x on all other purchases
  • Includes 10 elite night credits to help qualify for higher elite status;
  • After spending $25,000 each year, you get one free night certificate for cat1-5, usable at Marriott hotels costing up to 25,000 points

Chase Marriott Business (not worth holding at all)

  • $45 annual fee; 3x at Marriott/SPG, 1x on all other purchases
  • Includes 10 elite night credits to help qualify for higher elite status;

Chase Ritz-Carlton (old version; may gain new benefits)

  • $450 annual fee; 5x at Marriott/SPG, 2x on dining, car rentals, and airfare, 1x on all other purchases
  • Spend $10,000 to earn Gold status, $75,000 to earn Platinum status

AMEX SPG credit card (old version; may soon be discontinued)

  • $95 annual fee; 6x points at Marriott/SPG hotels, 2x on all other purchases
  • One free night certificate every year for cat1-5, usable at Marriott hotels costing up to 35,000 points
  • Includes 15 elite night credits to help qualify for higher elite status (effective in 2019; multiple SPG/Marriott cards cannot stack); earn Gold with $35,000 in spending
  • After August it will have the features described above

AMEX SPG Business credit card (old version; may soon be discontinued)

  • $95 annual fee; 6x points at Marriott/SPG hotels, 4x on dining, gas, and cellphone bills, 2x on all other purchases
  • One free night certificate every year for cat1-5, usable at Marriott hotels costing up to 35,000 points
  • Includes 15 elite night credits to help qualify for higher elite status (effective in 2019; multiple SPG/Marriott cards cannot stack); earn Gold with $35,000 in spending
  • After August it will have the features described above

AMEX SPG Luxury (new card, launching in August)

  • $450 annual fee; 6x points at Marriott/SPG hotels, 3x on dining and airfare, 2x on all other purchases
  • $300 Marriott/SPG annual reimbursement; one free night certificate every year for cat1-5, usable at Marriott hotels costing up to 50,000 points
  • Comes with Gold status automatically; earn Platinum with $75,000 in spending

Comments: Honestly, I find it a bit strange that Chase would launch so many Marriott-related credit cards. It seems like they want to segment cardholders more finely, but I really don’t think the two lower-end Marriott cards are worth keeping at all (they don’t justify the annual fee, and the benefits are weak). As for the new SPG cards, most of the changes are pretty standard, but it’s disappointing that they don’t offer Platinum status. One small pleasant surprise is that the 4x bonus categories on the SPG Business are actually decent, although that’s only 1 point more than the old 3x on all eligible spending categories. I’ll write separate review articles with more detailed analysis of each of these cards.

Summary

Based on the official changes, the overall theme is still clear: you need to stay more and spend more to receive better benefits. Personally, from the hotel’s perspective, I think this is a healthy cycle, since loyal high-end customers should still feel like they are getting differentiated treatment. On the credit card side, in addition to a number of new cards, there are also more new welcome-bonus opportunities. In terms of earning rates, the SPG cards are now fully on the same level as the Marriott cards. The encouraging part is that SPG cards also gained the FreeNight benefit, so at least they are now being treated equally.

Official sources:

2017 updates

【11/29/2017】 Starwood/Marriott sent out emails saying that the merger would not be completed in 2018. At the same time, they also updated some program benefits, as follows:

  • Hertz: Hertz will join SPG as a partner. Renting with Hertz will allow you to earn SPG/Marriott points. In addition, Marriott & Starwood Platinum members can receive Hertz Five Star status and enjoy benefits such as vehicle upgrades. SPG Ambassador/Marriott Platinum Premier members can receive the top-tier President Circle status
  • Starwood lifetime elites: points will not expire
  • Marriott eliminates rollover nights and status buy back: Starting in 2018, Marriott nights above the elite requirement will no longer automatically roll over to the following year, and current elite status will also no longer be able to be bought back for the next year (for example, if you fail to requalify this year)

Overall, they would likely continue adjusting benefits in both programs throughout 2018 so the two programs become more similar, helping with the eventual merger. The good news is that SPG/MARRIOTT credit cards can continue coexisting peacefully for another year. Hopefully they keep offering strong welcome bonuses to attract new customers!

【9/23/2016】 Marriott announced its initial plan for combining Marriott and SPG memberships. The four most important points were:

  • Marriott accounts can be linked with SPG accounts: After linking, points can be transferred and elite status can be matched across programs. Marriott linking page, SPG linking page
  • Marriott points and SPG points can be transferred at a 3:1 ratio: There is no transfer limit, and transfers are completed instantly
  • Marriott elite status can be matched with SPG status: Marriott Platinum = SPG Platinum; Marriott Gold = SPG Gold; Marriott Silver = SPG Preferred Plus
  • Marriott and SPG would continue operating separately through 2018: Bookings and earning qualifying stays and nights would still remain separate

For the most detailed official explanation, see: official FAQ on the membership merger.

Mergers and acquisitions among hotel groups can lead to major changes across points programs, elite status programs, and co-branded credit cards. Below, I’ll break down these areas one by one.

Analysis of Points Transfers

An Introduction to SPG and Marriott Points

SPG points can be considered some of the most valuable and flexible hotel points around. There are two main reasons:

  • There are many high-value redemption options within the U.S. One SPG point can often be redeemed for 2–3 cents in value, with perks such as stay four nights get one free and weekend award discounts.
  • You can transfer them to a wide range of airline mileage programs. The direct transfer ratio can be as high as 1:1.25 (for every 20,000 SPG points transferred, you get a 5,000-mile bonus), and with additional promotions it can go as high as 1:1.5.
  • For more details, see: Guide to Using SPG Points

Marriott points, on the other hand, are generally considered average in value among hotel points. The main reason is that lower-tier Marriott properties in the U.S. often have relatively poor facilities, while higher-tier hotels require a large number of points. For airline mileage transfers, the ratios range from 5:1 to 2.2:1, which is bad enough that most people do not consider transferring Marriott points directly to miles. However, Marriott’s best-value redemption is its travel package. In addition to redeeming for 7 hotel nights at the standard rate for various categories, part of the Marriott points can also be converted to major airline miles at a 1:1 ratio. For analysis of the travel package, see:

Booking Hotels with Points

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First, Marriott and Ritz-Carlton properties can both be booked directly with Marriott points, while SPG properties still need to be booked with SPG points. From the chart, you can see that using the 3:1 conversion ratio, top-tier Ritz-Carlton properties require fewer points than SPG’s top-tier Cat 7 hotels. When redeeming, you can compare which hotel you prefer, look at the number of points required, and then decide which one to book.

Points Transfers and Travel Packages: The Biggest Highlight!

Since 1 SPG point = 3 Marriott points, converting SPG points to Marriott for a travel package redemption is the best-value option. First, let’s look at the Marriott travel package chart. Airline partners include AA, Delta, Alaska, and Southwest (and UA gets an additional 10%).

The highest redemption value comes from the Cat 1-5 package with the most miles:

  • 7 nights + 120,000 miles = 270,000 Marriott = 90,000 SPG

That works out to 1 SPG point = 1.5 miles, plus 7 free hotel nights. That is even better than the best direct SPG-to-miles transfer ratio of 1:1.25, not to mention the extra 7 nights of lodging (at Cat 1-5, roughly $80 per night, that is already about $560). So if you want to convert SPG points into airline miles, it is best to accumulate or buy 90,000 SPG points and then redeem through a travel package.

Other Ways to Play It

Converting Marriott points to airline miles: Previously, if you only had a small amount of Marriott points and not enough for a travel package, converting them to miles was a very poor deal. Now it is much simpler: just convert Marriott points into SPG points first, and then transfer to airline miles. The ratio is not as good as a travel package, but for small transfers to top off an award ticket, it is still a solid option.

Buying points for a travel package: If you are short on points for a Marriott travel package and do not want to transfer from UR, then buying SPG points, converting them to Marriott at 1:3, and then redeeming for a travel package is your best option. SPG often runs promotions on purchased points, although the best-ever 50% off sale at the end of 2016 has already ended.

Indirect points transfers: If two SPG accounts have had the same address on file for more than 30 days, points can be transferred directly between the accounts. So if you want to combine Marriott points for a travel package redemption, you can first consolidate on the SPG side and then transfer back.

UR to ANA: ANA miles are an excellent deal for business class between China and the U.S., requiring only 95,000 miles. If you are just a little short on ANA miles, it is still possible to do UR>Marriott>SPG->ANA. The same logic also applies to MR to UA.

Elite Status Program

In addition to points transfers, another major feature is reciprocal elite status matching. Before 2018, the two programs still kept their original structures, but elite members from each side could match across programs. In simple terms, if you earn elite status with one hotel group, you can enjoy elite benefits with both groups.

The status match rules are as follows: Marriott Platinum = SPG Platinum; Marriott Gold = SPG Gold; Marriott Silver = SPG Preferred Plus. You only need to link your SPG and Marriott accounts, and your elite status will match automatically.

Elite Benefits Highlights

SPG and Marriott elites share some similar benefits, such as early check-in, late checkout, and suite upgrades. However, these are often fairly soft benefits and depend entirely on the hotel’s occupancy that night. Still, being able to match and get elite status with both hotel groups is a nice perk. In my opinion, the real highlights are:

  • Marriott Gold: free breakfast and lounge access
  • Marriott Platinum: can directly receive UA Silver status, including advantages such as access to hidden award inventory.
  • SPG Platinum: free breakfast and lounge access

Strategy Ideas

The best way to use status matching is to earn elite status with the hotel program where it is easiest to qualify, then match across. After that, pick the program where it is easiest to requalify in order to keep your elite status going.

Fast ways to get Gold status:

  • SPG one-night Gold: This was a famous SPG promotion. Stay one night at an SPG property in Asia and you could be upgraded directly to Gold status. You had to call customer service in advance to request it before your stay. Of course, it was only valid for one year, and after that you would need to requalify. If you only wanted Gold, opening a new SPG account each year would do the trick.
  • AMEX Platinum credit card gives SPG Gold: Holding any AMEX Platinum card allows you to receive SPG Gold directly, which effectively also gives you Marriott Gold. Note that you need to call and provide your SPG number in order to get the upgrade. After canceling the Platinum card, SPG Gold disappears automatically, while Marriott Gold remains. AMEX Platinum credit card introduction
  • AMEX SPG credit card spending earns SPG Gold: If you hold an AMEX SPG credit card and spend $30,000 in a calendar year, you can receive Gold status directly. Because SPG points are valuable, many people use the SPG card as their primary spending card. For people with relatively high everyday spending, that makes the SPG card even more valuable.

Fast ways to get Platinum status:

  • SPG Platinum challenge: Another well-known SPG promotion. You had to call to register for the challenge, then complete 18 stays within 90 days to receive SPG Platinum directly. After that, you could match to Marriott Platinum and in turn receive UA Silver status.
  • Marriott Platinum challenge: This first required Marriott Gold, so you could use one of the methods above to get Gold quickly. The challenge was 9 stays within 90 days. After that, you could match to SPG Platinum and also receive UA Silver status.

Credit Cards

The merger between the two hotel groups also had some impact on their co-branded credit cards. SPG cards were issued exclusively by AMEX, while Marriott cards were issued exclusively by Chase. After the hotel merger, the two issuers were certain to compete over issuing the new Marriott credit card lineup.

What Will Happen to the SPG Credit Card?

First, the SPG credit card will definitely disappear, because the SPG brand group itself will no longer exist going forward. When hotel groups merge, there are usually a few possible outcomes for co-branded credit cards:

  • Each issuer keeps a card, and the old card is retained automatically: When US Airways merged with American Airlines, Barclays kept its US Airways credit card and simply renamed it. More recently, Barclays has continued issuing a new AA co-branded credit card alongside Citi’s AA card. So it is possible that this card will simply be rebranded with a Marriott name and continue to be issued by both AMEX and Chase.
  • The old card disappears and is converted to another AMEX card: Chase’s Amtrak credit card was converted to the Chase Freedom card after BofA obtained the rights to issue the Amtrak credit card. So this SPG card could potentially be converted into an AMEX Blue Cash Preferred or Blue Cash Everyday card.
  • The old card disappears completely and is converted into a Chase Marriott card: After Citi obtained the rights to issue the Costco co-branded card, AMEX Costco cards were directly converted into Citi Costco cards. That said, I think AMEX probably would not want to lose this group of AMEX customers as well.

Personally, I think the most likely outcome is that the SPG card will be converted into another AMEX card. But since the plans for both companies were unchanged in 2017, this change may not be announced until late 2017 or sometime in 2018.

Applying for, Using, and Keeping the SPG and Marriott Credit Cards

For people who do not currently have either the SPG card or the Marriott credit card, which one should you apply for? And for people who already have both cards, how should you use them, and should you keep them? Here are a few key points:

  • Welcome bonus: 25,000 SPG vs 87,500 Marriott: Since Marriott and SPG points could be transferred freely at a 3:1 ratio, the 87,500 Marriott bonus is more valuable in comparison.
  • Application restrictions: AMEX 5-card rule vs Chase 5/24 rule: AMEX has a limit of at most 5 credit cards total, while Chase generally will not approve a new Chase card if you have opened more than 5 new cards in the past 24 months. Overall, AMEX’s rule is looser and easier to work with.
  • Hotel spend: 2 SPG vs 5 Marriott: Right now, the SPG credit card also earns 2x points at Marriott hotels, while the Marriott card earns 5x points at SPG properties. Since 2 SPG = 6 Marriott, it is a no-brainer to use the SPG card.
  • Annual perk: 0 vs Cat 1-5 FN: Here, the Marriott card wins easily. The annual Cat 1-5 Free Night is worth about $60-$70 each year, while the SPG card gives you nothing.
  • Collector’s item: 100% discontinued vs 100% retained: The AMEX SPG card is certain to disappear, so of course you should grab that 25k SPG welcome bonus before it is gone for good.

In short, I think that if you do not have the SPG card, you should definitely get one before it is discontinued. After that, whether it gets converted into another AMEX card or into a Chase Marriott card, you still come out ahead. If you already have both cards, then for everyday use you should definitely put your spend on the AMEX SPG card and wait a year to see how things develop.

Summary

In the end, the article really comes down to three main points:

  • Do not transfer SPG points directly to airline miles; using the Hotel + Air package gets you 1: 1.5 + 7 free nights
  • Get SPG Gold quickly, then match to Marriott Gold for free breakfast
  • While the SPG card is still around, apply soon and lock in the bonus before this discontinued product is gone

I actually started writing this article last September and did not finish it until this January. I have never stretched an article out over such a long period before. Hopefully this post has been helpful.