Based on my research and observations about SLH so far, I believe you have hit on the optimal value of SLH: points redemptions in the most expensive cat 8s during high season for destinations where cash rates are highly seasonal, such as Greece. There are a handful of these. For the rest it's pretty hit and miss, more miss than hit in fact:
- Cat 8 where rates are not very seasonal, most of those do not have cash rates over $700 per night year-round so questionable value of using points in those instances, and when they do, points redemptions are severely restricted and I could rarely find a string of 5+ nights where points redemptions were possible a few months in advance.
- Cat 7 and below: some of those points redemptions are fair and worth booking, but as a general rule there are no screaming deals
- Most hotels in low or shoulder season: point redemptions are subpar value, much better to pay cash
- Cash rates on hyatt.com often too far above slh.com, especially if you are willing to go with pre-paid rates rather than needing a flexible refundable stay