Finally, Marriott Starwood merger became a reality after Marriott International signed the deal to acquire Starwood Hotels for $13.6 billion. This will create the largest hotel company in the world.

However, ambiguity prevails over the shape of loyalty programs and how Marriott will tackle the highly competitive reward points of Starwood. ?Clarity on that front is important for customers.

The Marriott Starwood merger was mooted in November 2015 at an offer of $12.2 billion. ?Things moved suddenly when a consortium led by Anbang Insurance Group in China made a better offer at $14 billion in the last week of June.

While Starwood refused to comment, Marriott said the shareholder vote will clarify things better.

Loyalty Points Issue

According to ABC News, despite the deal, there is no clarity on the ticklish reward or loyalty points. That may be delayed until guidance comes from the shareholders vote.

Some analysts expressed apprehension that post-Marriott Starwood merger, the customers of Starwood who stay at properties like Westin, Sheraton, St. Regis and Le Meridien may face the setback of devaluation in reward points.

According to Sean McQuay of NerdWallet Credit Card Group, this is possible because Starwood’s loyalty program is very competitive at 2 to 2.5 cents per Starpoint.

However, Marriott offers customers 1 cent for each point earned per hotel stay. McQuay said even if loyalty programs are reworked in the aftermath of Mariott Starwood merger, it will take some time for customers to see any difference.

The delay is natural, McQuay reasoned, as the hotel industry has no precedent of mega-mergers between brands commanding vast consumer bases and loyalty programs.

To support the argument, McQuay drew parallels between the American Airlines-US Airways merger. Despite the declared merger in February 2013, the amalgamation of reward programs happened only in 2015, he noted.

According to data, Marriott Rewards and The Ritz-Carlton Rewards program has 55 million members. The Starwood Preferred Guest program claims 21 million members. Marriott acquired The Ritz-Carlton Hotel in 1998.

It is expected that until the ambiguity on rewards program is resolved, the combined entity from Marriott Starwood merger will make customers happy with temporary promotions.

Meanwhile, Starwood inked a deal to renovate and run three hotels in Cuba . It will be first US chain to operate hotels in Cuba after the country’s socialist revolution.

Signaling a new focus, in June Starwood sold St. Regis Florence and The Westin Excelsior, Florence in Italy to Nozul Hotels & Resorts controlled by Qatar’s Jaidah Holdings, for $123 million.

Starwood CEO Thomas Mangas further stated that his group would continue to run the properties under the existing brand over a long-term deal, reports Business Travel News.?