On June 23, Marriott International fell 3.02% in regular trading, trading at $384.08/share, with turnover of $315 million. The decline comes amid ongoing pressure from a dispute between franchise hotel owners and the company over Bonvoy loyalty program revenue sharing.
According to reports, 51 Marriott-branded hotel owners representing nearly 1,000 properties sent a joint letter to senior executives demanding a larger share of profits generated through co-branded credit card deals. Owners argue they absorb the cost of free-night point redemptions while receiving reimbursement below online travel agency settlement levels. The owners stated they were previously led to believe the loyalty program was roughly break-even but now believe Marriott is capturing significant upside. Marriott expects fee revenue from credit-card partnerships tied to Bonvoy to rise approximately 35% this year to nearly $1 billion, intensifying the profit-distribution tension.
Analysts note that franchise owners have limited bargaining power, but if Marriott concedes on revenue sharing, it could compress group-level revenue or reduce member benefit budgets, potentially weakening store-level customer acquisition. The broader Hotels, Resorts and Cruise Lines sector traded lower on the same day, with Booking Holdings down 2.0%, Hilton down 1.98%, and Carnival down 2.32%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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