GC are cleared just like CC. Going exchange rate but also incurring at least a 3% FX fee as complained about a few times here on FT. The FX rate posted by the hotel, which is always higher than the prevailing rate FX rate, has nothing to do with the FX rate used for CCs.

It is a toss up for me. I can earn an extra 5 pts/$ using the MR Prem Visa which incurs a 3% FX fee, or my Schwab Visa which is FX fee free and gets me 2% cash back. So below are the numbers for a $2000 stay:

$2000 x 5 = 10000 pts which I use for a minimum exchange rate of 1.5¢/pt. Therefore yielding at least $150 value less FX fee cost of $60 equals a minimum $90 value.

$2000 on Schwab Visa gets me $40 cash back.

So the MR Prem Visa easily comes out ahead; however it is very difficult to walk away from the FX fee savings and cash back.