American Express' recovery from losing its partnership with Costco got a boost as it reached an agreement with Starwood Hotels to introduce a new payment card.
The card will provide rewards for travelers who use the hotel chain. We always want to give our members more for their loyalty, and with these new benefits, we're making it even easier for our most valued guests to enjoy their travels in style, Starwood's senior vice president of distribution, loyalty and partnership marketing Mark Vondrasek said in a press release.
American Express and Costco could not agree to extend their card relationship. American Express is relying on new payments technology to help absorb the loss, while it also focuses on retaining other cobranded card relationships. Amex's earnings have been impacted by the loss, and the company also faces the impact of losing an antitrust case.
Visa won the Costco contract, though it has faced criticism over the terms of the deal.