Reader Question: Do hotels charge taxes and fees on Hyatt Points + Cash awards?
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.
One of the biggest advantages of redeeming points for hotel rooms is that you typically don’t pay taxes on award stays. That sets hotel loyalty programs apart from airline frequent flyer programs, which routinely add costs like taxes, airport fees and carrier-imposed charges to award tickets. These favorable hotel policies can mean huge savings, especially at more expensive properties.
But what about stays paid with a mix of points and cash? Do they confer this same privilege? TPG reader Jonathan reached out to us to ask exactly this.
Do you have to pay taxes and fees on Hyatt Points + Cash stays?TPG Reader Jonathan
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
Taxes and fees on points and money awards
All of the major hotel chains offer some form of points and money awards. While they work slightly differently across each program, the concept is simple: you get to save points on an award night by spending some extra cash.
Although these are still considered award nights, they don’t get all of the same benefits.
World of Hyatt charges taxes on the cash portion of its Points + Cash awards. Sometimes taxes are improperly applied to the full cash rate, so it’s important to look over your bill at checkout and make sure you aren’t being overcharged. On the flip side, you will earn points for the cash portion.
When you’re booking a Points + Cash award, you may incur extra charges, such as occupancy taxes or resort fees. Although sometimes waived on normal award stays, they do apply to Points + Cash stays. These charges will a fixed cost per stay or night.
All fees should be indicated upfront when you make your reservation, but sometimes you’ll need to check the fine print. If you incur additional charges that aren’t mentioned up fron, take it up with management or seek a refund through customer service after the fact. Make sure you save any relevant documents that back up your claim.
Even though you have to pay taxes, Hyatt’s Points + Cash awards can sometimes offer good value. Although you no longer pay a set amount of cash on these bookings based on hotel category, you can still save 50% off the standard rate while paying half the required points. Once peak and off-peak pricing goes into effect in July 2021, you’ll be able to save between 50% and 70% on these bookings. In other words, do the math to see which booking option makes the most sense.
Keep in mind, World of Hyatt also recently introduced a new feature called Pay My Way. It lets you book one reservation for multiple nights and pay using various methods for each night. This can be another useful option if you don’t have enough points to cover your entire stay and don’t want to go the Points + Cash route. Alternatively, if you’re short points, there are many ways to boost your World of Hyatt balance.
Related: The best hotel credit cards
Plenty of hotel chains offer points plus cash programs in some form. Unfortunately, though, these stays don’t get all the same benefits as standard award nights. In each case, expect the rules to be similar to World of Hyatt’s Points + Cash awards. Taxes should apply to the cash portion of your bill, and you may be responsible for other fees depending on the property and location.
Featured photo of the W Fort Lauderdale by Benji Stawski/The Points Guy.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.