Is It Worth Spending $75k on the SPG Luxury Card to Earn Platinum Status?
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Update: Some offers mentioned below are no longer available – Starwood Preferred Guest® Luxury Credit Card from American Express
The recently released Starwood Preferred Guest® American Express Luxury Card is the second premium co-branded hotel card in the Amex portfolio, following the Hilton Honors Aspire Card from American Express. Despite the high $450 annual fee (See Rates & Fees) that you’d incur on each card, both are loaded with perks to make your Marriott/SPG/Ritz-Carlton or Hilton stays more rewarding, including certain automatic elite status benefits: the Aspire Card offers complimentary top-tier Hilton Diamond status to all cardholders, while the SPG Luxury card only offers Gold status in the new Marriott program.
However, there’s an additional way to boost your status if you’re a new cardholder of the SPG Luxury card. Even though it isn’t the highest tier in the new program, you can earn Platinum status by spending a whopping $75,000 a calendar year on the card (note that the same spending threshold applies on the now discontinued Ritz-Carlton Rewards card). But just because that option is available, doesn’t necessarily mean you should take advantage of it. Today we’ll take a look at whether it makes sense to spend your way to Platinum status with the new SPG Luxury card.
There are two important factors I’ll consider in this analysis. First, I’ll take into account the opportunity cost of spending $75,000 on the card. Since your purchases could earn you a more valuable haul of points if you charged them to a different card, I’ll bring in what you’re “giving up” by putting them on the SPG Luxury card in my calculations below. Second, I’ll account for the value of Platinum status in the new program. When Nick Ewen did his comprehensive review of the new Marriott elite status levels, he valued Platinum status at $3,540. But if you’re qualifying through credit card spending instead of nights spent in a hotel, you’ll be getting much less value than this. It’s important to figure out how much less so you can make an educated decision.
Two quick reminders before we dive in. For the purpose of this post, I’m assuming that you can spend $75,000 a year without jeopardizing your personal finances. If you end up violating the first commandment of travel rewards and carrying a balance on your credit card, the interest you’ll pay will quickly erase the value of your points and elite status. In addition, all calculations are based on TPG’s most recent valuations.
New Platinum Elite Status
Marriott Platinum status comes with a number of pretty sweet benefits, but some of the most valuable ones include:
- 50% point bonus: Platinum members will earn 15 points per dollar spent at most brands in the Marriott portfolio.
- 4pm late check-out: This is guaranteed at most brands, though it is subject to availability at resort & convention hotels.
- Room upgrades: Platinum elites will enjoy space-available upgrades at check-in, and this includes suites (except at Ritz-Carlton locations, where suite upgrades are reserved for Platinum Premier members).
- Lounge access at eligible properties
- A welcome amenity: Select from points, breakfast or some other food and beverage credit, though the exact details vary by brand.
As someone who spends about 50 nights a year in hotels, these benefits give me plenty of reason to be loyal to Marriott. I get immense value out of the suite upgrades, bonus points and free breakfast in particular. But are these perks worth diverting $75,000 of spending to the SPG Luxury card?
As noted above, one of the prime factors in this analysis is the opportunity cost. Put simply, this cost represents the value you’ve lost by spending this amount of money on the SPG Luxury card rather than another card with a higher return on these purchases. Spending $75,000 on a co-branded SPG card pre-merger would have been much more lucrative. That card was widely considered to be the most valuable for everyday non-bonus spending as it earned the equivalent of 3 Marriott points per dollar, a return of 2.7%. Post merger, the card’s earning rate got cut by a third and now only earns 2 points per dollar. TPG values Marriott points at 0.9 cents each, so while that’s still a respectable 1.8% return, it’s noticeably smaller than before.
However, it’s not the most lucrative option out there. Assuming all of your spending was in non-bonus categories (i.e. not at Marriott/SPG hotels, which would earn 6x points per dollar spent, and not at US restaurants or flights purchased directly with the airline, which would earn 3x points per dollar spent), that $75,000 of annual spending would net you 150,000 Marriott points, worth $1,350. Let’s take a look at how that compares to some other great choices for everyday spend:
|Credit Card||Rewards Earned From $75,000 of Spending||Value
||Difference From Luxury SPG Amex|
|The Blue Business℠ Plus Credit Card from American Express||125,000 Membership Rewards Points (2x on the first $50,000 per year; 1x after that)||$2,375||+$1,025|
|Chase Freedom Unlimited||112,500 Chase Ultimate Rewards Points (as long as you have a “premium” card like the Chase Sapphire Reserve)||$2,250||+$900|
|Capital One Venture Rewards Credit Card||150,000 miles||$1,500||+$150|
|Citi Double Cash Card
As you can see, shifting your non-bonus spending from a card that earns transferable points (like the Blue Business Plus) to the SPG Luxury card could cost you, potentially over $1,000 in a single year. If you get that much value out of Marriott Platinum status, it might be worthwhile, but that’s a big chunk of change to leave on the table.
Bear in mind too that the above chart assumes you put all your spending on a single card instead of mixing and matching cards as you go. If you spent $50,000 on an Blue Business Plus, you would max out the 2x bonus and earn 100,000 Membership Rewards points, worth $1,900. You could then switch to the Freedom Unlimited for the last $25,000 of spending and earn 37,500 Chase Ultimate Rewards points, worth $750 (again, assuming you also have a card like the Sapphire Reserve and can combine your points). That brings your total value up to $2,650, almost twice as much as you’d get by using the Luxury SPG card alone.
If, on the other hand, most of your spending goes to a fixed-value or cash back card like the Capital One Venture or Citi Double Cash, you aren’t sacrificing as much in value. You would, however, be making a radical change to your overall points strategy. While 150,000 Marriott points have roughly the same value as $1,500 in cash, it requires much more effort to redeem them at a good rate. If you keep a fixed value card near the top of your wallet, odds are you appreciate simplicity and earning rewards with minimal effort. Switching to the SPG Luxury Card to earn Platinum status would cost you a modest $150 in rewards value, but it could end up costing you a whole lot more if you aren’t diligent about how and when you choose to redeem your points.
It’s worth noting that depending on your personal spending patterns the math could get a lot uglier. If you spend exactly $75,000 on your credit cards in a calendar year, putting all of that on your SPG Luxury card would mean sacrificing some high value bonus categories, from 3x points on travel and dining with the Sapphire Reserve to 5x points on airfare with The Platinum Card® from American Express. I’d only consider using the Luxury SPG Amex to spend your way to Platinum status if you can do so without giving up your other rewarding bonus categories. Of course the inverse is also true: if a large chunk of your spending comes at Marriott hotels, the 6x bonus category on the Luxury SPG Amex will work in your favor and narrow the gaps highlighted above.
It’s Better to Qualify the Old Fashioned Way
Unless you find yourself coming up just short of qualifying for Platinum status the old fashioned way (that is, by actually staying in hotels), I think the added value of getting it through credit card spending is minimal. All the Marriott/SPG credit cards offer 15 elite night credits (limited to one per Marriott account, not one per card, beginning in 2019), which means earning Platinum status really only requires 35 nights in a hotel, and that includes award stays. If you’re staying significantly less than that, the $75,000 spending threshold is just more trouble than it’s worth.
Depending on what card combination you would use instead of the SPG Luxury card, you could earn an additional $1,000+ worth of points. So if you can get that much value (or more) from your Platinum status in a calendar year, it might be worth taking advantage of this benefit. But how can we calculate exactly what value you’d get?
Nick’s valuation of Platinum status is based on the assumption that you stay 60 nights a year and spend an average of $150 per night. That’s how he arrives at the $3,540 sticker price for Platinum status. However, if you don’t actually accumulate 50 elite night credits during the year, you won’t be eligible to select a Choice Benefit. Nick values those at $250, and without them the value of Platinum status comes down to $3,290. Divide that by 60 nights, and you get a value of about $54 a night.
At that rate, here’s how this would translate into value at different night thresholds during the year.
|Nights at Marriott/SPG Hotels
||Value Of Platinum Status|
You can reference the chart above for a rough estimate of how much Platinum status will be worth to you, depending on your travel patterns. Compare that number to the value of points you would “lose” by shifting your spending to the Luxury SPG Amex, and you can decide whether or not it makes sense for you to pursue Platinum status via credit card spending.
Keep in mind too that if you’re staying 30 or so nights a year and you have the SPG Luxury card, you’re within striking distance of qualifying for Platinum anyway. It shouldn’t be hard to squeeze in a handful of additional nights, even if they’re just mattress runs to the local Fairfield Inn or Four Points. Spending a few hundred dollars to grab those last few nights to reach Platinum status the “hard way” may still be a better (and cheaper) option than shifting significant spending from another card to the SPG Luxury card.
Of course, this analysis looks at a singular benefit on the card: the ability to earn Marriott Platinum Elite status by spending $75,000 on the card in a calendar year. There are still several other lucrative perks that may make the card a worthwhile addition to your wallet, both now and in the long-run:
- Welcome bonus: 75,000 bonus points after you use your new card to make $3,000 in purchases within the first 3 months (worth $675).
- Earning rates: 6x points per dollar spent on purchases at Marriott/SPG/Ritz-Carlton hotels; 3x points per dollar spent at US restaurants and on flights booked directly with the airline; 2x points per dollar spend everywhere else
- Free night: Annual free night award on cardmember anniversary, valid at properties up to 50,000 points per night
- Statement credits: Up to $300 in statement credits every year for eligible purchases at Marriott/SPG/Ritz-Carlton properties, plus a credit for Global Entry or TSA PreCheck every four years
- Lounge Access: Priority Pass Select membership, including up to two guests
- Terms Apply
For complete details on the card, check out our post on Maximizing the SPG Amex Luxury Card.
Big spending on travel rewards credit cards can lead to large hauls of points and lucrative benefits, but is it a good idea to spend $75,000 on the Starwood Preferred Guest American Express Luxury Card to upgrade your automatic Gold status to Platinum status? To put things simply, if you’re close to qualifying for Platinum status already but have no way of getting there through the regular qualification criteria (elite-qualifying nights), heavy spending on the SPG Luxury card could drive some solid value, especially if you plan to remain loyal to the program moving forward. If not, you may want to consider a card like the Hilton Honors Aspire Card from American Express (thanks to its automatic top-tier status) or even the Capital One Venture Rewards Credit Card (thanks to the 10x miles you’d earn for hotel stays booked and paid through Hotels.com/Venture).
Just remember that if you decide to spend $75,000 a year on your SPG Luxury card, there is a massive opportunity cost. Make sure the elite benefits you’re getting outweigh the points you’re giving up, and never EVER spend money you don’t have just to earn points or status.
For rates and fees of the SPG Luxury Card, please click here.
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