You are right. My stays were certainly not peak. I was estimating Hyatt payment per point although they do not pay in points
A 5k Hyatt stay would likely pay 20$ at most off peak to the hotel - about 1/5th of their daily rate if Marriott and Hilton are comparable
Peak times, if Hyatt is like SPG then they pay 90% ADR and that is costing them money - so they caused devaluation of points overall.
Inflation has crept in and a 20% hike in $ cost has led to 40% average inflation in points redemption cost
They are the middle man holding the printing press and they can turn it on and off
The main point is keep some Hyatt or UR or now Bilt for availability but don't store them as value - for heavy spenders, cash is king.
Originally Posted by
italdesign
I was under the impression that all major chains reimburse hotel ~90% of ADR when occupancy is >~90%; below that occupancy, they reimburse them pennies on the $$. Is that not the case with Hyatt?
IF that's also the case with Hyatt, then there's seemingly no incentive for hotels to up or down categories, since they'd get the same reimbursement from Hyatt regardless; the incentive would be for Hyatt the program to SET the categories of each hotel.