I use points whenever I can as well in retirement. But I wouldn't use the points for European hotels at the OP's price point for the Barcelona hotel. When we were in Paris and Barcelona last year, I used a 5 night certificate at the Ren Vendome, where the nightly rate was around 450 EU (where the exchange rate was $1.33 to 1 EU), and I paid for stays at the Ren Barcelona Fira at 112 EU. Now, I'm rethinking whether I should use points for an upcoming stay in Flagstaff AZ, but it makes a big difference if you can use the points with a travel package, so though I might get .88 cent per point on my stay there, I'm also getting 1:1 points for miles, too.

Oh, by the way, when I've used points recently, it seems that I wasn't charged room taxes and occupancy fees in Paris. Isn't this normally the rule?