IHG and the Venetian and Palazzo are concluding a 15-year hotel licensing deal. That agreement will end on January 1, 2025. 

From October 2010 onward, the Las Vegas Strip integrated resort complex has been included in IHG’s reservation system, with its hotels associated as members of the InterContinental Hotels & Resorts worldwide portfolio. IHG, one of the globe's largest hotel chains by room count, did not specify the reason for terminating the partnership, but mentioned that it will have minimal effect on the rooms listed on its booking platform, and the financial repercussions will be slight.

"Although the end of this agreement will remove 7,092 rooms or approximately 0.7% from IHG’s overall system size in 2025, the unique nature of the fee structure under this particular licensing agreement means it contributed less than $1 million or 0.1% of IHG’s revenue from fee business in 2023 and a net nil contribution to operating profit from reportable segments,” according to a statement issued by the hotel giant.

The announcement came a day after MGM Resorts International revealed that the Delano at the Mandalay Bay property will be transformed into a W hotel later this year, deepening that operator’s partnership with Marriott International. 

 

Analyzing the Reasons Behind the End of the Venetian, IHG Agreement 

As mentioned earlier, IHG did not elaborate on why the Venetian and Palazzo are leaving the InterContinental Hotels booking system, although a change in ownership might be a contributing factor. 

IHG initially partnered with Las Vegas Sands, but that casino operator sold the Venetian, Palazzo, and a formerly named convention center in 2021 for $6.25 billion. The venues are operated by Apollo Global Management, a private equity firm, whereas the real estate is owned by VICI Properties. 

Regarding which party chose to terminate the IHG/Venetian partnership, it was either the hotel management or Apollo. Five years prior, IHG and Sands established a deal intended to last until 2027 for three of the gaming firm’s Macau casino hotels; however, those hotels are not showing up in searches on the IHG site at this time. 

Curiously, those two firms share a history. In 2014, Apollo spent $459.52 million (adjusted for inflation) to purchase 18 hotels in Europe from Ivanhoe Cambridge. At that moment, all of those properties featured different InterContinental brands. 

 

Las Vegas Hotel Collaborations Are Frequently Changing 

In general terms, the hotels along the Las Vegas Strip are managed by gaming firms, and conventional hoteliers typically refrain from branding gaming establishments with their names. Nevertheless, the two parties frequently collaborate strategically, utilizing their individual loyalty programs and booking platforms. 

Nonetheless, as demonstrated by IHG and the Venetian, along with previous examples, partnerships between casino operators and hoteliers are frequently dynamic and typically come with expiration terms. 

At this time, Apollo has not disclosed any intentions to replace IHG at the Venetian and Palazzo.