I recently booked a Junior Suite in the Meliá Boutique Hotel Cala d'Or (in Cala d'Or, Mallorca) using points and it was an excellent stay. The Junior Suite was only 2,000 points more than a normal room and included breakfast (which was very good). It was my first major Meliá redemption, and it was really worth it. I suspect, if used correctly, that Meliá Rewards is a hidden gem in the world of hotel loyalty.
The cost was 38,000 points for a night which would have cost about EUR180-200 at the time.