I'm just wondering why there is a fairly substantial surcharge when converting DC points into hotel points. This seems to be the case at least for the two programs I am aware of - Starwood and HHonors.
For Starwood, you convert 2500 DC points for 750 SPG points. That means you need to spent $1250 for 750 points whereas if you use the SPG AMEX you only need to spend $750.
Same discrepancy on HHonors - 2500 DC points for 2000 HHonors points. $1250 on DC vs $1000 on Hilton VISA and $667 on Hilton AMEX.
This discrepancy does not seem to apply on airline transfers (except for the fee).