The big hotels chains (Marriott, Hilton, Hyatt, IHG) all operate on their own rules (some good, some bad). If you’ve listened to me yap about valuations in the past, you would know that most of us value Hyatt as the best program. But Hyatt’s aren’t everywhere, so is it even worth it? I’ll compare some of the major programs to hopefully help you decide which program is right for you.
Marriott Bonvoy
Marriott operates on a dynamic pricing model. This means that if the cash price for a room is more expensive due to demand, the point redemption cost will also be higher. If nobody is visiting and cash prices are super low, the point redemptions are low too.
Take this hotel search for example: For the cheapest hotel in Minneapolis over the weekend, it would cost me an average of 16,000 points per night, with the lowest being 11,000 points per night. Cash price is about $100 per night, which puts me at about 0.91 CPP. Normal valuation is about 0.7 CPP.
Sidenote: notice how this is already under 1 cent per point. There’s a reason we don’t normally recommend transferring Chase or credit card points to Marriott or Hilton…
But Marriott has one benefit: the 5th night free. Basically, if you stay for 5 nights, Marriott will comp the night with lowest point cost.
In these situations, it’s best to find hotels that are pretty consistently priced.
Notice in the above screenshot how only the lowest price is taken off at 20k, even though two of the four nights are higher. But still, using the same example, 5 nights at this hotel would cost $1290. That comes out to about 1.17CPP. Already better!
Hilton Honors
Hilton’s program is quite similar to Marriott. The program is also dynamic pricing and it also offers a 5th night free. However, the redemption values are far worse.
Hilton points are typically only worth about 0.5CPP, compared to the 0.7 at Marriott. So for a $150 hotel room, a 30k redemption would be pretty standard. I’ve rarely seen rooms for about 20k or 22k, but those are extremely rare.
Take this search for the same nights in Minneapolis, where all hotels are at least 30k per night:
Hilton does however have some spectacular properties in the Pacific, through their partnership with Small Luxury Hotels of the World (SLH). I’m talking about overwater villas and bungalows that are quite literally thousands of dollars per night, all for the price of free.
For 5 nights in the Maldives, it costs just 480k points (with the redeem 4 get 1 free promo), whereas cash would cost a whopping $9057.70 in total
World of Hyatt
Hyatt is on another league when it comes to redemption value. Hyatt still uses an award chart, broken between low, peak, and regular season. If the hotel is typically busy you might be paying more. However, the cost itself will be pretty consistent across the board.
Take this search for example in Charleston, SC. Notice that the Hyatt House is only 5k points, which is a category 1 regular redemption. That hotel costs about $150 cash, so that’s already a whopping 3CPP! Leaps and bounds above Marriott and Hilton.
Even during the middle of the peak season in popular areas, the hotel never goes above the Category peak price. Take this example in Tokyo, where for the same 30k points, I could get a room that would cost over $500, as opposed to the Hampton Inn which is about $135 with Hilton. See what I mean?
The one thing Hyatt doesn’t offer is the free fifth night. So if you stay 5 nights, you will pay for all 5 nights. I personally find it pretty rare for me to stay 5 nights. Normally I stay just 1 or 2, so it’s not a huge dealbreaker for me.
Other Programs
Admittedly, I’m not too closely familiar with some of the other programs like Sonesta or IHG. I know that IHG also has some decent redemptions where some people would even buy points for (*gasp*)… But I thought I would cover the big 3 just so you can have a head start for figuring out your hotel strategy.
Which one is right for you?
This is a question that I never like to answer. Becuase I can only give the most consulting answer ever of “it depends”.
See, some people travel for work often and are therefore Marriott loyalists. Some others are credit card nerds (like myself) and opt for Hyatt. Some are just outright Hilton loyalists because Diamond status is so easy to earn.
I personally like Hyatt, where two or three nights might pay for a free night already. That’s a pretty good return, especially with a double points or nights promotion! A close second is Marriott, since they have far more properties and are all over the world. Plus, their breakfast benefit is pretty outstanding across the board.
I used to be a Hilton loyalist, since they were my first hotel credit card. But after getting into the game more, I’ve noticed their program to be weaker than the other two. I’m just saving up to go to the Maldives one day…