Originally Posted by
darthbimmer
Here's a quick assessment of post-devaluation point value:
Several of the hotels I stay at on business and leisure in the US have gone to Cat 7. They aren't necessarily the priciest around. I know from staying at them multiple times and from doing some quick spot-checking of prices that rooms generally range from $100 to $200 per night. Let's be a bit generous and call it an average of $175. Figuring in hotel taxes, let's call it $200 cash out of pocket.
On the points side, these hotels cost 50,000 per night plus an opportunity cost of about 4,000 HH points (21 points/dollar) that a paid stay would have earned.
$200 / 54,000 points = 0.37 cents per point
I previously valued HH points at 0.5cpp, so this is indeed about a 25% devaluation.
Seeing all the hotels that shot up to Cat 7, I am glad I made the decision to spend the bulk of my points prior to Jan 15.
Spot on valuation IMHO. I previously valued HH pts at 0.5 cents apiece. Although in fact I DID actually value the HH pts out of my Diamond acct at 0.6 cents apiece due to the Diamond Force possibility and the extra value created by that. After the devaluation I would value HH pts at about 0.4 cents apiece, and Diamond's HH pts at maybe 0.5 cents apiece. So my HH pts went from 0.6 cents apiece, down to 0.4 cents apiece once I drop from Diamond on 4/1/10 & coupled with the devaluation.
