Originally Posted by darthbimmer

To answer your basic question, "How to value hotel points," you've got to compute the redemption value of the points and determine whether or not that's worth it to you.

First, compute the cash value of this redemption. There's a difference out of pocket of $315. You spend 45,000 points to save that cash. That's a rate of $.007 per point. (This is a first-order analysis that doesn't take into account taxes or points you'd earn on a qualifying rate.)

Next, you ask yourself if exchanging points for $.007 (.7 cents) each meets your threshold of value. I value IHG points at .6 cents each, so this would be a worthwhile use of points for me. I set this threshold based on my experience in the places I normally visit and the values I customarily see. Different people will have different thresholds.