Marriott raised $920 million in days by selling points it hadn't issued yet.
In May 2020, Marriott raised $920 million from Chase and American Express by selling future Bonvoy points and revenue. It mostly doesn't own its hotels. Its loyalty program was the asset.
Transcript
$920 million. That is what Marriott raised in a matter of days in May 2020, with its hotels emptied by a global lockdown.
The usual move is a loan against your buildings. Marriott mostly does not own its buildings. So it sold something it had never run out of: future loyalty points.
Marriott got $570 million from Chase, including a $500 million prepayment of future revenues, and $350 million from American Express, as a pre-purchase of Bonvoy points.
In a cash crunch, look past what you own to what your partners will pay for in advance. Marriott's loyalty program turned out to be a financeable asset. Not every business has one, so check before you need it.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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