Wells Fargo has nabbed a co-branded hotel card partnership that was previously held by Barclays, notching a win in the megabank's efforts to revitalize its credit card business.
The bank's new multi-year partnership is with Choice Hotels International, which operates brands such as Radisson Hotels, Comfort, Quality, Clarion, Econo Lodge and Cambria. Choice Hotels has nearly 7,500 properties across the globe.
The announcement comes as Wells retools its credit card portfolio. In recent years, the San Francisco bank
The $1.9 trillion-asset bank has not traditionally been a major player in the co-branded card space, where banks partner with airlines, hotel chains and other retailers to offer credit cards bearing both companies' names.
The latest card announcement is "one more step in our transformation to grow our credit card business," said Krista Phillips, Wells Fargo's head of consumer cards, marketing cards and merchant services.
It's "no secret" that Wells Fargo's competitors have many of the bigger co-branded partnerships, Phillips said, but there are "many meaningful" opportunities for the bank to grow in the card business.
"We're going to continue to look at opportunities as they arise," Phillips said, adding that the partnership announced Tuesday is "part of our long-term strategy to partner with best-in-class brands."
Barclays said in a statement that it and Choice Hotels decided not to renew their partnership, which will expire in April.
"Until then, current cardmembers can continue using their cards for purchases, earning points for every dollar they spend," the Barclays statement read. "Details about the new program will be communicated by the new issuer to cardmembers in advance of the change."
Wells Fargo has long offered a co-branded card with the retailer Dillards, and in 2020 it launched Hotel.com's first-ever credit card. Last year, Wells
The Choice Hotels partnership may be a sign that Wells Fargo is "attempting to make some moves" in the co-branded space, said GigaPoints founder Erik Budde, whose firm tracks credit card rewards.
But taking a large share is difficult given that the market is competitive, with airlines, hotel chains and others locked into longstanding agreements with their card issuers.
"These are long-term agreements, and it probably takes some time to break in," Budde said.
The Choice Hotels card will stick with the chain's current branding for its card program: Choice Privileges. The card, however, will now be issued with Mastercard, a change from the current co-branded card offered by Barclays and Visa.
Existing cardholders will see the card's new features starting in May, and Wells Fargo will start taking applications for new cardholders at that time.
Customers will be able to use the card at any retailer that accepts Mastercard, but they will get five times points for stays at the hotel chain's properties and three times points for spending at gas stations and grocery stores, as well as on home improvement plans and phone plans.
"We really believe that this is going to be a lifestyle card, not just a travel credit card," Phillips said.
Customers will also be able to use benefits tied to the World Elite Mastercard program, which offers discounts at some merchants, travel concierge services and in-person or virtual experiences offered on Mastercard's Priceless platform.
"Teaming up with Wells Fargo and Mastercard allows us to provide cardmembers with even faster ways to earn exceptional rewards," Robert McDowell, chief commercial officer at Choice Hotels, said in a news release.
