Citi to Gain $150M from Hilton Honors Portfolio Divesture to AmEx

Yesterday, Citi announced that the company expects to gain around $150M from the sale of its Hilton Honors card portfolio to AmEx.  The bank says the deal should close by 1Q18 with all open and eligible Citi Hilton co-branded credit card accounts transferred to American Express by January 30th. Interestingly enough, the statement notes that the $150M gain is approximately one year of revenues from the Hilton cards.

Also yesterday, AmEx and Hilton announced new and updated products including the Hilton Honors American Express Aspire Card, a premium card that has some really cool perks. The card will offer instant Diamond status, $250 airline incidental fee credit, $250 Hilton resort credit, $100 on-property credit at Waldorf Astoria Hotels, and one weekend night reward at a hotel or resort in the Hilton portfolio each membership year as well as a second weekend night reward after spending $60,000 in purchases on the card in a calendar year. No word on the sign-up bonus yet, but the card will have an annual fee of $450. There’s also now a small business Hilton card and the current Hilton Honors Surpass Card will be renamed the Ascend card (but retain all its current benefits). The new cards and benefits will be available in January 2018. Of course, both the Aspire and new small biz cards will be considered new products, meaning current Hilton cardholders will be eligible for the sign-up bonuses (whatever they may be).

As noted above, as part of this partnership extension and enhancement, American Express has also entered into an agreement to purchase Citi’s Hilton co-branded credit card portfolio.

Full details in the PR below:

American Express and Hilton (today announced the details of the upgraded American Express Hilton Honors co-branded credit card portfolio, which features four new Cards designed to give consumers and small businesses more choice, more benefits and more value. As previously announced, American Express will become the exclusive issuer of Hilton Honors credit cards in the United States.

The benefits and services for each of the four new Cards were designed based on extensive consumer and small business research. Hilton Honors members asked for simplicity, value, status, exclusivity and the ability to earn more points toward their next trip whether they are traveling for business or leisure. The four Card portfolio – the no-annual-fee Hilton Honors American Express Card, the Hilton Honors American Express Ascend Card, the Hilton Honors American Express Aspire Card and the Hilton Honors American Express Business Card – reflect the benefits and value consumers and small business have asked for, delivering the most rewarding Hilton Honors credit cards ever.

Upgraded Suite of Hilton Honors American Express Cards Offers More Value

Designed for the occasional traveler, the no-annual-fee Hilton Honors American Express Card received an upgrade, including the removal of foreign transaction fees. It maintains the same name and much-loved benefits of the original card turning everyday spending into inspiring travel opportunities. The full benefits include:

• 7X Hilton Honors Bonus Points at hotels and resorts in the Hilton portfolio worldwide
• 5X Hilton Honors Bonus Points at U.S. grocery stores, U.S. restaurants, and U.S. gas stations
• 3X Hilton Honors Bonus Points on all other eligible purchases
• Complimentary Hilton Honors Silver status; Earn Gold status after spending $20,000 in purchases on the Card in a calendar year
• No foreign transaction fees
• No annual fee

For the savvy and established traveler, the Hilton Honors American Express Ascend Card will deliver maximized travel rewards, including elevated Hilton Honors status, the ability to earn more points and Priority Lounge passes. The full benefits include:

• 12X Hilton Honors Bonus Points at hotels and resorts in the Hilton portfolio worldwide
• 6X Hilton Honors Bonus Points at U.S. grocery stores, U.S. restaurants, and U.S. gas stations
• 3X Hilton Honors Bonus Points on all other eligible purchases
• Complimentary Hilton Honors Gold status; Earn Diamond status after spending $40,000 in purchases on the Card in a calendar year
• One Weekend Night Reward at a hotel or resort in the Hilton portfolio after spending $15,000 in purchases on the Card in a calendar year
• 10 free Priority Pass^™Lounge passes to ease the airport experience
• No foreign transaction fees
• $95 annual fee

Frequent travelers seeking premium services and elevated experiences will find the Hilton Honors American Express Aspire Card is their complete travel partner – providing instant Diamond status, lounge access, airline credits, free nights and 24/7 concierge access. This new Card offers the richest Hilton Honors earn rate ever. The full benefits include:

• 14X Hilton Honors Bonus Points at hotels and resorts in the Hilton portfolio worldwide
• 7X Hilton Honors Bonus Points on flights booked directly with airlines or amextravel.com, car rentals booked directly from select car rental companies and at U.S. restaurants
• 3X Hilton Honors Bonus Points on other purchases
• Complimentary Hilton Honors Diamond status
• One Weekend Night Reward at a hotel or resort in the Hilton portfolio with your new Card and each year of Card Membership
• A second Weekend Night Reward at a hotel or resort in the Hilton portfolio after spending $60,000 in purchases on the Card in a calendar year
• Unlimited Priority Pass^™Lounge passes to ease the airport experience
• $250 Airline incidental fee statement credit
• $250 Hilton resort statement credit
• $100 on-property credit at Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts when booking the exclusive Aspire Card package
• Access to 24/7 American Express concierge
• No foreign transaction fees
• $450 annual fee

Designed to address the needs of 25 million U.S. small business owners, The Hilton Honors American Express Business Card will help small business owners get the most out of every dollar spent and every mile traveled to invest back into their business. This Card will allow the user to maximize Card rewards related to business expenses and travel and includes access to the American Express OPEN platform designed specifically for small business owners. The full benefits include:

• 12X Hilton Honors Bonus Points at hotels and resorts in the Hilton portfolio worldwide
• 6X Hilton Honors Bonus Points on U.S. gas stations, wireless telephone services purchased directly from U.S. service producers and U.S. purchases for shipping
• 6X Hilton Honors Bonus Points on U.S. restaurants, flights booked directly with airlines or amextravel.com, and car rentals booked directly from select car rental companies
• 3X Hilton Honors Bonus Points on all other eligible purchases
• Complimentary Hilton Honors Gold status; Earn Diamond status after spending $40,000 in purchases on the Card in a calendar year
• One Weekend Night Reward at a hotel or resort in the Hilton portfolio after spending $15,000 in purchases on the Card in a calendar year
• A second Weekend Night Reward at a hotel or resort in the Hilton portfolio after spending $60,000 in purchases on the Card in a calendar year
• 10 free Priority Pass^™Lounge passes to ease the airport experience and get work done more easily and comfortably while waiting for a flight
• No foreign transaction fees
• $95 annual fee

All four of the Hilton Honors American Express Cards are linked to Hilton’s award-winning guest-loyalty program, Hilton Honors, providing Card Members with the choice to redeem for any of Hilton’s 14 world-class brands comprising nearly 5,000 properties with more than 812,000 rooms in 103 countries and territories.

Today, consumers are able to acquire the Hilton Honors and Surpass Cards and will automatically be upgraded to the new benefits launching January 2018.