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If you’ve booked a hotel directly through IHG’s site, you’ve probably noticed the option to reduce your points rate by adding some cash. For example, rather than redeeming 50,000 for an entirely free night, you could instead redeem 45,000 points + $40 or 40,000 points + $70, in which you’re effectively purchasing points for 0.8 or 0.7 cents each, respectively.

TPG values IHG points at 0.7 cents each, so neither of these options were an absolute must — However, IHG just added a third points + cash redemption option at some of its pricier properties, and it’s definitely worth considering.

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Now, when you search for higher-end IHG hotels, such as InterContinental properties in key markets, you’ll see an option to save 15,000 points by paying $90. In the InterContinental Hong Kong example above, that drops the price from 50,000 points per night to 35,000 points, plus $90. With this new option, you’re essentially purchasing points for 0.6 cents each, which is well below TPG’s valuation.

Better yet, if you book using points plus cash and you cancel your reservation, you’ll receive a refund of the full points amount, including those you “purchased.” While IHG often offers points for as little as 0.575 cents each, there’s usually a minimum purchase requirement, making this a great option for buying points throughout the year.

H/T: One Mile at a Time

Chase Sapphire Preferred® Card

With great travel benefits, 2x points on travel & dining and a 50,000 point sign up bonus, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game.

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More Things to Know
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Named Best Credit Card for Flexible Travel Redemption - Kiplinger's Personal Finance, July 2016
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR on Purchases
N/A
Regular APR
16.49% - 23.49% Variable
Annual Fee
Introductory Annual Fee of $0 the first year, then $95
Balance Transfer Fee
5.00%
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.