As for lower category redeemers - that is mostly me. I pay cash or points on leisure trips purely based on points vs cash rates ( with points valued at 2 cents per point). Since 2018, I have redeemed 90% of my points at cat 1s-4s because I find on the upper end, hotels are either just too stupid expensive for my tastes, or the points are so high compared to cash that I just pay cash. I love full service hyatts and most of my stays and redemptions are at lower category HRs and GHs in secondary US markets, but I don't really have dreams of aspirational properties. It's overall worked out well from a value perspective.

I would have an easier time to swallow this pill if it hasn't been for the fact that nearly all of the hotels I have usually redeemed at have gone up at least 1 category in the last few years, and are showing a lot more 'peak' rates and lot less 'off peak' rates over the last year. Hotels I was able to redeem at 5K are now very often cat2/9.5K, and now will be up to 15K. Those that were cat3/12K points are now cat4/15-18K points will soon be up to 25K points. That is a doubling to tripling of points over a few years, and these hotels are still often just $100-150 (for the cat 2s) and $150-250 (for the cat 4s) a night usually when I am looking to stay.

Like I have mentioned early in the thread, my points balances have been creeping up because even before this change I have been having a harder time finding >2 cents per point valuations in my normal travel habits. I am doing a hard reset at my point valuations to no more than 1.5 cents per point when it comes to evaluating earning via CCs, (I am wondering if that is too gracious based on my normal travel patterns) which means I am pulling back most all of my CC spend towards my 2% cash back Citi card unless I need to get some AA miles.

I drained my balance for a week long November stay at a cat6 (which used to be a cat 4) at a nominal 2.5 cents per mile valuation. I was thinking of doing it before the changes anyways, just was relunctant due to the costs of the points (or cash) but it sort feels like it's either now or never.