Marriott Gets $920M from Chase and American Express
Two weeks ago we wrote about Hilton selling $1 billion worth of points to American Express. Now another hotel chain has raised close to that amount by selling points to Amex and receiving early payments from Chase.
Marriott today announced it has signed amendments to its existing co-brand credit card agreements with Chase and American Express. These amendments will provide the company with $920 million in cash, with $570 million coming from Chase and the other $350 million from American Express.
The $570 million from Chase includes $500 million of prepayment of certain future revenues and $70 million from the early payment of a previously committed signing bonus under the co-brand credit card agreement.
The $350 million from American Express is for the pre-purchase of Marriott Bonvoy points and other consideration. Credit card issuers usually use these pre-purchased points for rewards and welcome bonuses.
In each case the cash will be recorded by Marriott as deferred revenue. It will be available for general corporate purposes. Both amendments also include extensions of the existing co-brand credit card agreements with the issuers.
Read full announcement here.