Buy SPG Points For Less than 2.3 Cents Each

May 17, 2016

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

You might be hesitant to spend hard-earned cash to build out your Starpoints balance with the Marriott merger on the way, but this latest offer from SPG is definitely worth a look. Now through June 3, 2016, SPG members who have either the Starwood Preferred Guest Credit Card from American Express or the Starwood Preferred Guest Business Credit Card from American Express have an opportunity to purchase Starpoints for as little as 2.275 cents each, a 35% discount from the 3.5 cents you’d normally need to pay.

Screen Shot 2016-05-17 at 11.18.51 AM
Purchase points for 2.275 cents each.

To purchase points at the discounted rate, head to this page and select the number of points you’d like to buy. You need to purchase a minimum of 5,000 points to take advantage. You can purchase up to 30,000 points per account per calendar year — as part of this deal, you’ll pay $682.50 for 30,000 points, rather than the usual $1,050.

Should you do it?

As a long-term play, buying Starpoints doesn’t make sense, since we know that Marriott will eventually be combining Starwood Preferred Guest with Marriott Rewards. While executives insist that they’ll be adding value to the program (rather than removing it) following the merger, there’s always a chance that Starpoints will be converted to Marriott Rewards points at an unfavorable rate.

Screen Shot 2016-05-17 at 11.55.00 AM
$521 per night, or 17,000 Starpoints.

That said, if you have a specific redemption in mind, it can make sense to buy points. In the example above, for a five-night stay at Honolulu’s famous Royal Hawaiian over Christmas, you’ll pay an average of $521 per night (including tax) even with the AAA rate ($582 per night if you aren’t an AAA member). However, if you’re redeeming Starpoints, you’ll need just 17,000 points per night, since you’ll be getting the fifth night for free. Purchased at 2.275 cents apiece, those 17,000 points will cost you $387, representing a savings of $134 per night.

$220 per night vs. 20,000 points.
$220 per night vs. 20,000 points.

Not all redemptions represent a great value, however. Take the example above, with a one-night weekday stay in July at Scottsdale’s Phoenician. The middle of summer isn’t exactly peak season for Arizona, when temperatures can soar well above 100 degrees. Since it isn’t a desirable time to visit, rates at this Luxury Collection resort average $220 per night including tax, or 20,000 points. If you redeem your points, you’ll be getting just 1.1 cents per point in value, and that’s before factoring in the points you’d earn on a paid stay. At that rate, you’d be paying twice as much for your points than the value you’d get from a redemption.

So, as always, the decision of whether or not to buy points depends on the value you’ll get from a redemption. Since you have until June 3 to take advantage, it pays to do your research here. Also note that if you’re an Amex cardholder, you can also boost your balance by referring a friend to either SPG Amex card. And both the Starwood Preferred Guest Credit Card from American Express and the Starwood Preferred Guest Business Credit Card from American Express are currently offering sign up bonuses of 25,000 points (after $3,000 spent in the first three months with the personal card, or $5,000 spent in the first three months with the business card).

Featured image courtesy of the Moana Surfrider in Honolulu.

Will you be purchasing discounted Starpoints?

Editorial Disclaimer: Opinions expressed here are the 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.