American Express May Lose Starwood Co-Branded Credit Card Deal

American Express May Lose Starwood Co-Branded Credit Card Deal

April 4, 2016         Written By John H. Oldshue

American Express may be losing yet another co-branded credit card deal, this time with Starwood Hotels & Resorts Worldwide. New reports indicate AmEx could lose its partnership if Marriott International is able to successfully acquire Starwood.

Marriott has been in a bidding war with Anbang Insurance Group for Starwood. The American Express Starwood Preferred Guest Card is a longstanding rewards card that accounts for 4% of the issuer’s lending department and 2% of its total spending, according to Bloomberg. Since Marriott already has a co-brand deal with JP Morgan Chase, the Starwood card could be changing issuers if the acquisition takes place.

American Express suffered a significant loss with the cancellation of its 16-year partnership with Costco. New Citi co-branded Costco cards will be mailed out to customers by the end of May, and they will automatically be activated on June 20th. Costco accounted for an estimated 20% of AmEx’s loans and 8% of the company’s total spending.

As for what will happen with Marriott, Starwood, and American Express, Marriott’s CEO Arne Sorenson has simply told investors to “stay tuned.” Starwood and American Express have maintained a strong relationship for quite some time, so there is a chance that AmEx will be able to hold onto the contract, even if the Marriott acquisition is complete.



The information contained within this article was accurate as of April 4, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


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About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
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