Hyatt Hotels Corp. has a new long-term licensing agreement with The Venetian Resort Las Vegas, roughly a year and a half after losing a similar loyalty affiliation with MGM Resorts.
Hyatt will add The Venetian Resort Las Vegas' two luxury hotel properties — The Venetian and The Palazzo — to its various booking platforms and its World of Hyatt loyalty platform as it seeks to reestablish a foothold on the Las Vegas Strip.
“Las Vegas is a perennial favorite for World of Hyatt members and our group business customers are requesting rooms at a higher volume than pre-pandemic due to the world-class entertainment and unique experiences offered by this dynamic destination,” Hyatt's Chief Commercial Officer Mark Vondrasek said in the news release announcing the deal. “The licensing agreement with The Venetian Resort Las Vegas adds 7,000 rooms and 2.25 million square feet of meeting space, inviting Hyatt's loyalty members and valued customers to have even more options to earn and redeem loyalty points when visiting Las Vegas.”
The two companies did not say when The Venetian properties will enter Hyatt's platforms other than noting it will happen "in the near future."
"Soon, World of Hyatt members and eligible meeting and event planners will be able to earn and redeem loyalty points on qualifying stays, earn credit toward the Brand Explorer Award and, for World of Hyatt elite members, enjoy additional on-property benefits," the news release said. "With this long-term licensing agreement, Hyatt will offer more choice for rewarding travel experiences and stays in the all-suite resort at the heart of the Las Vegas Strip."
Marriott International's Bonvoy supplanted Hyatt as MGM's hotel loyalty partner in mid 2023, and Marriott and MGM have been touting the successes of that partnership since.
"Bonvoy guests are driving higher spend to our properties," MGM Resorts Chief Financial Officer Jonathan Halkyard said during the company's October earnings call.
"As we look at Marriott, it's a really a transient play, and hopefully moving out some package business. That will be our strategy for next year, also," Halkyard added.
The Venetian had previously been in a loyalty partnership with IHG Hotels & Resorts since 2010, but IHG recently walked away from that agreement. IHG CEO Elie Maalouf said the affiliation ends on Jan. 1, 2025.
“The legacy agreement is from 15 years ago, and we were a very different company from 15 years ago. The ending of that agreement will have no effect on the P&L and a slight improvement to the system fund,” Maalouf added during the company's most recent earnings call.
In the release about the new deal with Hyatt, Patrick Nichols, president and CEO of The Venetian Resort Las Vegas, said the partnership comes about at the same time as a $1.5 billion renovation of The Venetian's guestrooms.
"Our legendary resort continues to lead the way on the Strip, setting the benchmark for innovation, luxury and unforgettable guest experiences," he said. "As we embrace a new era for The Venetian Resort, this relationship enables us to expand our reach and connect with new audiences.”
As part of the deal, World of Hyatt benefits will also be offered to "elite Venetian members," and the two companies have pledged to coordinate on meetings, incentives, conferences and exhibitions business along with demand for convention space.