American Express May Lose Starwood Co-Branded Credit Card Deal
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.