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Hotel Owners Push Marriott for Bigger Share of Bonvoy Profits

Wall Street Journal US Business •
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Hotel owners across the United States now launch a collective push against Marriott International’s Bonvoy loyalty program. Nearly 1,000 franchisees sign a March letter demanding a larger share of the program’s profits. They argue that the company’s co‑branded credit cards, which draw massive customer spending, have shifted revenue away from the hotels that supply the rooms for their operations daily.

Marriott has projected that fee revenue from these credit‑card partnerships will rise 35 % this year, reaching almost $1 billion. Franchisees claim the program was once only breaking even, yet the giant now pockets most of the gains while the hotels absorb the cost of point redemptions. The letter lists 51 owners who feel short‑changed.

The dispute highlights the growing importance of loyalty programs as revenue engines for hotel chains. If Marriott renegotiates the terms, it could reshape profit margins across its franchise network and alter the competitive balance with rivals that rely on similar models. Investors will watch how the company balances franchisee pressure against its own growth targets.