Starwood "Enhances" Cash & Points Option: Increases Price and Adds New Room Options
Update: Some offers mentioned below are no longer available. View other current offers here.
This morning, Starwood announced that it will be updating – and by that, they seem to just mean upping the price, its Cash & Points redemption options starting March 5, 2013, as well as adding the ability to redeem Cash & Points for upgraded rooms and suites.
Starwood’s Cash & Points redemptions have historically been some of the best hotel point redemption values around, often yielding at least 3 cents per point in value, but often much more than that.
You can find the current category breakdowns here, but for reference on them, the new redemption levels and the differences:
Category 1
Old: 1,200 Starpoints + $25 offered at Asia-Pacific, US and Canadian hotels only.
New: 1,500 Starpoints + $30
Difference: 300 points + $5
Category 2
Old: 1,600 Starpoints + $30 offered at Asia-Pacific, US and Canadian hotels only
New: 2,000 Starpoints + $35
Difference: 400 points + $5
Category 3
Old: 2,800 Starpoints + $45
New: 3,500 Starpoints + $55
Difference: 700 points + $10
Category 4
Old: 4,000 Starpoints + $60
New: 5,000 Starpoints + $75
Difference: 1,000 points + $15
Category 5
Old: 4,800 Starpoints + $90
New: 6,000 Starpoints + $110
Difference: 1,200 points + $20
Category 6
Old: 8,000 Starpoints + $150
New:10,000 Starpoints + $180
Difference: 2,000 points + $30
Category 7
Old: 15,000 Starpoints + $275 (this is a relatively new redemption level)
New: 15,000 Starpoints + $275
Difference: Same
So now not only will you be using more points (between 300-2,000 depending on the category of hotel, but you’ll also be forced to shell out more cash (between $5-$30) bringing your value per point average down even further.
Not All Bad News
On the bright side, you can now make cash & points redemptions at all Category 1 and 2 hotels worldwide, not just in the US, Canada and Asia-Pacific, as is the case now.
On one hand, clearly a 20% increase is bad news – it’s essentially 20% more expensive. On the other hand, Starwood hasn’t changed these redemption levels for years, and I think there will still be great value to be had, so for me, this increase isn’t really enough to sway me away from the Starwood Preferred Guest program. I think there are still plenty of opportunities to get great redemptions, mostly in the mid-tier properties, though Categories 6-7 are becoming too rich for my blood.
The new upgrade and suite redemption options at least give you a choice, especially if you value those bigger, more specialty rooms, although as SPG has really started quantifying these suites and upgrades over the past year and taking a less willy-nilly approach to who gets suites is a good thing overall. However, as a super Platinum, this new access to suites may cut down on the number of complimentary upgrades I get, which already isn't very high.
Example
One of my favorite Cash & Points redemptions is at the Westin Palace Madrid. I’m planning on going there for a couple days this June. Looking at rates now, I found the nightly rate is about 250 euros – about $335. This is a Category 5 hotel, so award nights go for 16,000 points a night, while the Cash & Points option is currently 4,800 + $90. That gives me a value of 5.1 cents per point.
However, come March 5, if I were to make this Cash & Points reservation, I’d be spending 6,000 Starpoints + $110, so my new point value would instead be 3.75 cents – I’ve lost about 27% of the value of my points.
While I still think that’s a decent redemption for this hotel in peak season, I’m still not glad to see the decline in value of my Starpoints, so it’s going to make some decisions as to whether to redeem Cash & Points or just pay the nightly rate more difficult in more situations in the future.
Since these changes don’t go into effect until March 5, you still have time to make the most of Cash & Points redemptions for the next 6 weeks or so. I'd recommend making as many reservations as possible, because most hotels have pretty generous cancellation policies with cash & points, so better get in before the rates all go up!
[card card-name='Starwood Preferred Guest® Credit Card from American Express' card-id='22034416' type='javascript' bullet-id='1']
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
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- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.