Originally Posted by
meecal
Points transferred into Southwest Rapid Rewards from a hotel loyalty program will count toward CP. However, Ultimate Rewards points transferred in directly will NOT count toward CP.
To second the other note: The verbiage on the signup T&C calls out meeting the spend requirement via purchases, so balance transfers won't count toward the spend requirement.
The problem with using points from a hotel loyalty program is that they do not transfer 1:1. It's very costly in points to go that way.