Marriott tells me that they are updating their website today to include the new StudioRes brand.

• At most Marriott brands, members earn 10 points per dollar (base) plus elite bonuses.
  
• At some limited-service brands, members earn just 5 points per dollar (base) plus elite bonuses.
  
• At StudioRes, it will be just 4 points per dollar (base) and no elite bonuses.

This isn’t a function of lower room rates earning fewer points. That’s already built into the model where points-earning is based on the amount of money spent at the hotel. The lower earning rate per dollar is reflective of Marriott pushing down what they charge owners.

And StudioRes stays earn zero elite night credit. How can that be? After all, a night is a night, right? Already Marriott has Protea Hotels, Four Points Express and City Express where members earn one elite night credit for every two qualifying nights stayed. Marriott encourages members to stay there less because they’re earning less from the owners. But then the program becomes less of a reason to stay there!

• They want owners, and rooms, in order to generate incremental revenue
  
• They attract owners with ‘low low prices’
  
• And so they return less to the member staying at these hotels

Credit: Marriott

StudioRes is Marriott’s new ‘basic’ brand that they were literally calling ‘mid’ as a placeholder name. That’s not to be confused with low-end Fairfield conversion brand in the works, Project Mid-T.

Marriott tells potential owners they should invest in StudioRes because,

Marriott mastered the extended stay segment and no one knows more about creating value for owners

Efficient staffing model (no breakfast, weekly housekeeping, 24/7 front desk availability)
Tailored Marriott Bonvoy loyalty program

Marriott CEO Anthony Capuano has said they’ll put ‘net rooms growth’ on his tombstone. That’s the metric he drives. He’s able to sign up more owners with low prices, but forgets that the only thing of value he offers hotel guests is the Bonvoy program. When that program no longer offers rewards that entice customers to stick with hotels that affiliate with Marriott, he no longer has anything of value to offer owners and the owners no longer have a reason to pay Marriott.

Some owners refer to Bonvoy members as “prospects.” Marriott delivers potential guests to hotels, and that’s what the owners are largely paying for. So the value of the program has to be strong enough to deliver guests. Is earning 4 points per dollar – perhaps a 2.4% rebate – enough to convince them to pick StudioRes over other properties?

All Marriott has is the brand, so when it also allows owners to lower costs by ignoring program commitments to elite members it is degrading the brand’s promise – and therefore the value that it sells to properties. It trades short-term revenue for long-term business viability. It’s sad to see what’s becoming of Marriott.