Confidential: 2018 Hotel Category Placements Now Available
As outlined via the June 22 mi360 RUNDOWN, new hotel category, base reimbursement rate, and Cash + Points information is now available. As planned, hotels were notified of their specific property information via email yesterday. Loyalty members will receive an email notification today with this information, but we wanted to ensure you had an opportunity to review the new placement of all hotels in your portfolio.
As a reminder, these new hotel categories, base reimbursement rates, and Cash + Points structure will take effect beginning in August when Marriott Rewards®, The Ritz-Carlton Rewards® and Starwood Preferred Guest® (SPG®) come together as one combined program. Also beginning in August:
- members will have seamless access to earn or redeem points across 6,500 participating hotels as all properties will be accessible through our channels (e.g., Marriott.com and Starwoodhotels.com).
- new and expanded benefits will be introduced to members.
Hotel Categories
The 2018 Hotel Categories that will take effect under the new combined loyalty program in August were posted on members.marriott.com today; click here to view the full list. In preparation for the new structure taking effect on Launch Day, an off-cycle update of hotel categories was performed using the same criteria and process as the Marriott Rewards annual process in that hotel categories are not directly correlated to a hotel’s reimbursement. Going forward, category assignments will continue per the usual schedule with updates in Q1. Standard Categories 1–7 will exclusively be used for all reservations booked between August and launch of the new brand in 2019, as outlined below:
| Category | Standard |
| 1 | 7,500 |
| 2 | 12,500 |
| 3 | 17,500 |
| 4 | 25,000 |
| 5 | 35,000 |
| 6 | 50,000 |
| 7 | 60,000 |
| 8 (coming 2019) |
85,000 |
Note: Category 8, plus off-peak and peak pricing, will be added in 2019.
Base Reimbursement Rates
Also included in the email sent to hotels yesterday is the new base reimbursement rate for each hotel. The new structure will use a streamlined base rate on lower occupancy nights and a smoother reimbursement curve, with gradually increasing compensation on higher occupancy nights. If occupancy is below 85%, the Base Reimbursement Rate will be used; however, if the day’s occupancy is higher than 85%, the Premium Reimbursement Rate will be used.
Additionally, an updated Cash + Points chart will be implemented to align with the new redemption chart.
Following are additional updates for your awareness in preparation for the upcoming August Launch Day.
Suite Night Awards (SNAs)
Beginning on Launch Day in August, SNAs are one of five offerings for the Annual Choice Benefit option available to Platinum Elite members with 50 nights or Platinum Premier Elite Members with 75 nights. Suite Night Awards may be requested at time of booking and be confirmed beginning five days in advance for upgrades for select, premium rooms or standard suites on a per room, per night basis, subject to availability. Premium rooms should be any room that a hotel could classify as an upgrade or upsell, that has a key identifier (e.g., view, more square footage, corner room, upgraded amenities, etc.). They may be used for Loyalty Program eligible paid stays, as well as redemption stays, and Cash & Points stays.
Hotels will receive reimbursement for Suite Night Awards in addition to any reimbursement for a redemption stay or cash & points.
| Hotel Daily Occupancy | Suite Night Reimbursement |
| <85% | 0 |
| >=85% and <95% | 5% ADR |
| >=95% | 10% ADR |
Note: If a hotel chooses to upgrade a previously-denied SNA on day of arrival, the hotel will not be reimbursed.
Resources & Reminders
As we approach this key integration milestone in August, additional details will be shared with further Loyalty updates, as well as updates on other aspects of the Big 4 | Platform Integration. As a reminder, owners and franchisees are encouraged to join the new Loyalty Update webinars for details on upcoming loyalty changes and the benefits of these changes for owners, management companies, and hotels. The first webinar in this series, which will address Charge-out & Interchange Rates and Full Folio, will take place later today. Additionally, management companies should join the twice-monthly management company webinars, which are communicated via mi360, to remain informed on integration and other relevant topics.
