MGM Resorts International and hotel operator Marriott International announced a 20-year agreement Monday to create an expansive loyalty program covering 17 of the casino company’s resorts in a partnership with a platform that boasts more than 180 million members.

The agreement expands the partial relationship the Strip's largest casino operator has with Marriott’s customer loyalty program that started when MGM acquired the operations of Cosmopolitan of Las Vegas in 2021.

MGM’s properties, including its 12 Strip resorts with more than 40,000 hotel rooms, will join the Marriott loyalty program to create the MGM Collection with Marriott Bonvoy. The program will launch in October and will give the 40 million members of MGM’s loyalty program access to Marriott’s 8,500 hotel properties worldwide.

Financial details were not disclosed and the CEOs of MGM and Marriott said on a Monday morning conference call that future details involving the loyalty program benefits will be announced before the October launch.

On the conference call, Marriott International CEO Tony Capuano said the new alliance goes far beyond the traditional franchise agreements the company has with outside resort operators because it created a separate category for MGM’s properties.

“This is a very robust relationship … that allows us to take full advantage of the brands or the entertainment and culinary offerings that MGM offers,” Capuano said. “In turn it allows MGM and its loyalty members to take full advantage of the breadth of our global portfolio.”

Analysts expect MGM Resorts will discuss the program further when the company reports second-quarter results on Aug. 2.

“The city has evolved in recent years to become the sports and entertainment capital of the world,” MGM Resorts CEO Bill Hornbuckle said on the conference call. “Las Vegas is truly a destination for everyone. Bonvoy members will have an inside track for all of it. We think there will be a tremendous opportunity for members of both companies' loyalty programs.”

MGM Resorts’ current loyalty partnership with Hyatt Hotel will expire when the Marriot agreement goes into place. When MGM acquired Cosmopolitan, it offered the company a chance to open talks with Marriott.

Analysts said the partnership creates a strong link between two of the largest companies in the gaming resort industry and the nongaming lodging community. It will also help increase visitation to the Strip, which is now seeing occupancy levels that were produced in 2019 before the pandemic.

“Some investors have questioned what drives the story beyond Formula One [race] in November and the Super Bowl in February,” Truist Securities gaming analyst Barry Jonas wrote in a research note Monday. “We think this partnership should drive longer-term, sustainable growth [and] driving even greater levels of occupancy, importantly with a better mix of higher-quality customers.”

Focusing on customer loyalty

CBRE gaming analyst John DeCree told investors in a research note that MGM management previously noted that Marriott Bonvoy members accounted for nearly 20 percent of the total room nights at the Cosmopolitan, giving the company a reason to expand the partnership.

“While we think this would be a lofty target for the rest of the MGM portfolio, we do see a real opportunity for MGM to replace some of its lowest tier [online travel bookings] and package room nights with Bonvoy customers,” DeCree wrote.

The Las Vegas Convention and Visitors Authority said in its recent visitors profile that 76 percent of Las Vegas tourists in 2022 were repeat customers. Expedia has said Las Vegas is one of the two most searched destinations in the U.S. along with New York.

DeCree said those two stats “highlight the importance of customer loyalty.”

Under the agreement, four of MGM’s Strip resorts — Bellagio Aria, Park MGM and Cosmopolitan — in addition to joining the new MGM collection, will be added to existing Marriott collections, including the Autograph, Luxury and Tribute portfolios.

MGM’s other eight Strip properties — Vdara, MGM Grand, NoMad Las Vegas, The Signature at MGM Grand, Mandalay Bay, New York-New York, Luxor and Excalibur — will join the MGM Collection with Marriott Bonvoy.

Five other MGM properties — Beau Rivage in Biloxi, Mississippi, Borgata in Atlantic City, MGM Grand Detroit, MGM National Harbor in Maryland and MGM Springfield in Massachusetts — will also be part of the new collection.

The agreement also includes a marketing package with BetMGM, which is 50 percent owned by MGM Resorts and operates the company’s sports betting business in more than 20 states and online casino operations in two states.

Marriott and BetMGM will collaborate to provide Marriott Bonvoy members opportunities to earn points on certain BetMGM transactions and participate in exclusive games, experiences and offers on the BetMGM platform.

BetMGM Rewards members will have the opportunity to exchange BetMGM Rewards points for Marriott Bonvoy points. 

Shares of MGM Resorts closed at $48.19 on the New York Stock Exchange Monday, down less than 1 percent. Marriott shares closed at $191.29 on the Nasdaq National Market, up 1 percent.

Updated at 1:56 p.m. on 7/17/2023 to include closing stock prices for MGM and Marriott.