Originally Posted by
Diplomatico
Assume a night at the Hyatt Anywhere is 10,000 points for an award booking. Now assume that the cost of that room - when you check online - is $225/night if you paid in cash.
Presuming you would have paid the $225/night to stay there anyway, the 10,000 UR points that you transfer to Hyatt to redeem are worth 2.25 cpp. People who transfer to Hyatt for points to redeem at an all-inclusive resort like the Hyatt Zilara in Cancun are paying something like 15,000 points/night for a room that retails for $500+ per night, depending upon the time of the year. The math is even more impressive on that redemption.
Edit: The numbers are also pretty large when you transfer to airline partners and redeem for F/J seats.
There are always outliers... but one should use the overall redemption value at a chain. It is my understanding that Hyatt points are not generally worth 2.25 cents per. For example, TPG shows a value of 1.8 (
https://thepointsguy.com/guide/monthly-valuations/). I'm not saying he's correct... and I have limited experience with Hyatt. But, he also values UR at 2.1. So this means he values UR at MORE than what he values Hyatt at (and so that means there is somewhere people like him transfer UR to that gets them more than they can get at Hyatt). Reading the UR redemption thread, people claim Hyatt is the best redemption oppty. This is what has me confused.
As for airline redemptions, I understand redemptions for Biz/First would be insane (6-8 cents per)... but most people (like me) who redeem air for biz/first would NEVER pay cash for those legs - so this isn't really a fair redemption # to use. Obviously the economy rate of 1.5 cents per isn't fair either. Maybe it's 2.1 (as TPG shows). But it's sort of a personal redemption rather than a true cash vs UR points calculation (unless you do actually pay cash for those seats and now don't have to).
So still stumped as to where/why TPG (and others) value UR over 2 cents per. It appears to me most value them less than the current Starwood rate of 2.7. Since that is going down 33% in August... it would appear if the value is truly >2 that a UR card would vault into the #1 spot for everyday spend.
This is what I'm trying to corroborate