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!
Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees