Quick Points: When you should redeem free night certificates instead of hotel points

Free hotel night certificates are invaluable in a clever points and miles strategy, but you need to know how to maximize them.

You can earn free night certificates for staying a specific number of nights each year with a particular hotel chain, renewing a credit card or spending a certain amount on your hotel credit card each calendar year.

These certificates can each be worth hundreds of dollars in hotel stays, but you should be aware that there's a reason award travel enthusiasts prefer regular ol' points.

Let's discuss why you should often strive to use your free night certificates before burning points. We'll also examine some rules of thumb to help you ensure you're getting the most value from free night certificates.

Related: Best hotel rewards programs in the world: Which one is right for you?

Free night certificates are more restrictive than hotel points

Free night certificates expire

The main reason you should use your free night certificates before you burn any hotel points is that free night certificates expire.

Hotel points expire, too, but it's extremely easy to extend their life. Depending on the hotel currency, your points may expire after anywhere between 12 and 24 months. However, that clock resets every time your account experiences activity (namely, earning or redeeming points).

Free night certificates are typically valid for just one year after the issue date. Each hotel has its own rules for what happens when a free night certificate expires, but one thing is constant: They can't be extended indefinitely. You might get a one-time exception that extends your certificate for a few months, but this is unlikely to happen more than once. So, use it before you lose it.

Related: Maximize hotel free night certificates by planning your credit card applications

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Free night certificates have limitations

All free night certificates have an effective "points value." For instance, Marriott issues free night awards with various points caps, like 35,000 or 50,000. Hilton's free night certificates apply only to standard award rooms, which cost up to 150,000 points per night; you can't use them toward premium room types. Hyatt offers a Category 1-4 free night certificate, which limits your options to properties in Categories 1 to 4.

Hotel points, on the other hand, aren't hampered by these restrictions. If you want to stay at the Category 8 Park Hyatt Beaver Creek, for example, you can simply spend 35,000 Hyatt points for a free night.

Note: Marriott allows you to combine free night awards with up to 15,000 points. This increases the number of hotels where you can use your certificate but still caps the certificate below the points rate of some of Marriott's fanciest hotels.

Related: What to do when your Hyatt free night certificate is expiring

Sometimes it's better not to use free night certificates first

For all the merit of utilizing your free night certificates first, you shouldn't do it if you aren't getting a reasonable value from them. Here are two reasons to keep them in their holster and instead use points.

Free night certificates are single-use

If your first hotel stay after earning a 50,000-point free night certificate is with a property that costs 10,000 points, it wouldn't be wise to use your certificate.

That's because free night certificates are single-use. If you stay at a hotel that costs less than the certificate, you'll forfeit the remaining value. Try to use them at a hotel that costs around the same number of points your free night certificate is worth — unless it's expiring really soon.

So if you have a Marriott 35,000-point free night certificate, for example, try to plan a hotel stay that would cost 30,000 points or more to get maximum value.

Related: Best Hiltons in the world to use your award certificate

Use free night certificates for short stays

Another restriction that may encourage you to save your free night certificate: You can't use it in conjunction with a fourth- or fifth-night-free perk.

Several hotel chains will give you a complimentary night when you book a certain number of consecutive reward nights:

• Marriott and Hilton offer the fifth night free when booking five or more consecutive reward nights.
• IHG offers the fourth night free for IHG credit card holders when booking four or more consecutive reward nights.

But if you booked four nights with Marriott points and one night with a Marriott free night certificate, you would not qualify for a free fifth night — because Marriott doesn't count free night certificates as "award nights." If you're staying five nights with Marriott, it's better to use points for all five nights and save your free night certificate for another stay of three nights or fewer.

Related: How to maximize Marriott Bonvoy award night redemptions

Bottom line

If you don't redeem your free night certificate, it will expire. In most cases, there's nothing you can do to indefinitely extend its life. For this reason, it's better to use it as soon as (reasonably) possible.

If you have an upcoming stay at a hotel that costs nearly the same number of points as your free night certificate is worth, use it. Save your points for longer or costlier hotel stays that can't be booked with a restrictive certificate.