Marriott International is ending its 34-year exclusive beverage partnership with PepsiCo, replacing it with The Coca-Cola Company across its entire global portfolio of more than 9,800 properties spanning 145 countries and territories.
The changeover, which begins this summer, will affect nearly 1.78 million hotel rooms and an estimated 450 million room nights annually. Beyond guest rooms, the switch extends to restaurants, bars, lobby markets, meeting and banquet facilities, pool outlets and vending machines throughout the Marriott estate.
In communications to hotel owners, Marriott cited guest preference as the primary driver, stating that more than 70 per cent of Bonvoy loyalty programme members favour Coca-Cola products over Pepsi. The company has not disclosed the financial terms of the new arrangement, though industry analysts suggest the deal is likely to involve a combination of reduced syrup pricing, volume rebates, equipment support, branded coolers and fountain installations, marketing contributions and potentially direct payments.
The original Pepsi partnership, struck in 1992, was never rooted in guest preference. At the time, Coca-Cola declined to provide Marriott with below-market loans reportedly valued at between $50 million and $100 million, with the drinks giant said to have internally characterised the request as expecting it to act as a “banker.” PepsiCo stepped in with the more attractive financial package and secured the exclusive contract.
The Coca-Cola Company welcomed the announcement, saying it looked forward to “creating a great guest experience across the world’s largest hotel company” and describing the partnership as a reflection of the strength of its brands and guest preference for its total beverage portfolio.
For business travellers, the switch is likely to be well received. The beverage question has long been a minor but persistent bugbear at Marriott properties, particularly following the group’s 2016 acquisition of Starwood Hotels & Resorts, which brought the Pepsi-only policy to formerly Coke-serving brands including Sheraton, Westin and W Hotels.
The transition represents one of the largest single-account beverage switches in the global hospitality sector and underscores the growing importance hotel companies place on aligning supplier partnerships with documented guest preferences rather than purely financial considerations.