Hyatt is running a targeted promotion to some customers with the offer of 40% more when you purchase points by April 29. Although you can buy points for even less through the Daily Getaways deals this spring, those packages sell out so quickly that it is essentially a gamble. It’s much easier to buy the points through Hyatt. (HT to Loyalty Lobby)
The maximum purchase amount is 55,000 points, and with a 40% bonus that yields a total of 77,000 points for $1,320. Is this a good deal?
I generally value my Gold Passport points at 1.4 cents each, and paying 1.71 cents per point suggests that I’m losing value in this transaction. However, the cost of award nights is fixed while the retail cost of the same night can vary. When I say “1.4 cents,” I’m placing an average value on those points for accounting purposes. I expect you could find some situations where it is worthwhile to buy points, and I’ll provide some examples below.
My preferred sweet spot for award nights with Hyatt are Category 4, at 15,000 points per night, which you can find in some less expensive urban and vacation cities (think of the excellent Grand Hyatt properties in Kuala Lumpur, Berlin, and Seattle or the Park Hyatt in Siem Reap). That means paying $256.50 for those miles. If you can find a Category 4 hotel that charges more than $256.50, you’re coming out ahead.
Another good sweet spot is Category 6. Hyatt’s top Category 7 only contains a few hotels, but there are many more luxury hotels in Category 6 for 25,000 points. The Andaz Maui, Andaz 5th Avenue, and Park Hyatt Chicago are all examples. You may be able to find a night at one of these hotels for less than $427.50.
Finally, Points + Cash awards are a great example in which you can obtain more than 1.7 cents in value. With these awards you redeem half as many points and pay a fixed cash amount — essentially paying for the other half. I consider them a better deal than most free night awards that use all points, and you can also upgrade them and earn credit toward elite status. But you must have points to start with.
|Hotel Category||Free Night Award||Points + Cash||Cost per Point Saved|
|1||5,000||2,500 + $50||2 cents|
|2||8,000||4,000 + $55||1.375 cents|
|3||12,000||6,000 + $75||1.25 cents|
|4||15,000||7,500 + $100||1.33 cents|
|5||20,000||10,000 + $125||1.25 cents|
|6||25,000||12,500 + $150||1.2 cents|
|7||30,000||15,000 + $300||2 cents|
Depending on which category hotel you book, the cost of the points you buy with your cash portion will vary. For example, you pay 1.2 cents for points when you book a Category 6 hotel with 12,500 points and $150 (instead of redeeming just 25,000 points). If you need some points to get started you could buy them through this promotion first for 1.71 cents. The average cost would be 1.46 cents per point, and it would be upgradeable.
Award space for Points + Cash awards is more limited, but the breakeven point is much lower. You can almost certainly find a Category 6 hotel that retails at more than $365.