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Do Hotel Points + Cash Awards Offer Good Value?

Jan. 10, 2016
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3 min read
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Do Hotel Points + Cash Awards Offer Good Value?
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TPG reader Linda tweeted at me to ask about booking hotel awards with cash and points:

“Is the IHG Points and Cash option worthwhile?"

As an award travel enthusiast, I'm always happy when loyalty programs offer more ways to redeem my rewards, so I'm glad to see points and cash options becoming more widespread. Wyndham introduced its Go Fast rate earlier this year, Marriott announced plans to launch Cash + Points awards in early 2016 and Hyatt made improvements to the Gold Passport program by bringing its Points + Cash awards online. These awards aren't limited to hotels — Delta offers a Miles + Cash option to SkyMiles members for select flights.

IHG's Points & Cash redemptions are pretty straightforward. There are several options: At most properties, you can either pay $40 per night to save 5,000 points on your award rate or you can pay $70 to save 10,000 points. IHG Rewards also just added a third option at some of its upper-tier properties, allowing you to pay $90 to save 15,000 points per night.

With the first option, you're essentially paying 0.8 cents for each point you save. The second option gives you a better price of 0.7 cents per point, and the third option trims the price once again to 0.6 cents per point. I list IHG Rewards points at 0.7 cents apiece in my latest monthly valuations, so I'd say on average IHG's Points & Cash awards are nothing special. However, there are some circumstances where they do make sense.

For starters, these awards can help you stretch your points when you don't have enough to cover your entire stay. As an example, if you're planning a five-night stay at a Category 3 property (normally 20,000 points per night), but you only have 90,000 points, you could book four award nights outright, and redeem your last 10,000 points plus $70 to book the fifth night at the level 2 Points & Cash rate. You're not necessarily gaining value that way, but you can minimize the cash cost of your trip.

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The Points & Cash rate can help you keep out-of-pocket costs down if you don't have enough points to cover your entire stay.

Another scenario where these awards can come in handy is if you're looking to buy points at a discount. When you cancel an IHG Points & Cash reservation, you'll receive a full refund of the points you redeemed, including the ones you "purchased." That means you can effectively buy points for as low as 0.6 cents apiece, which could help you save on stays at more expensive properties.

Finally, many IHG Rewards members have been offered bonuses for booking Points & Cash stays during the Accelerate 2016 promotion, which can boost your overall return and give you an opportunity to "buy" points at well below the usual rate.

In general, I think both Hyatt and Starwood Preferred Guest offer more lucrative points and cash awards, but there are opportunities to save with IHG as well. Run the numbers for the property and dates you're interested in and see which booking option makes sense for you.

Check out these posts for more info on maximizing IHG Rewards:

If you have any other questions, please tweet me @thepointsguy, message me on Facebook or send me an email at info@thepointsguy.com.

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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

American Express® Gold Card

TPG Editor‘s Rating
4 / 5
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.