Originally Posted by Eastbay1K
Something to keep in mind, which may shift you to SPG, is that without status, you may have serious issues redeeming your points in desirable/more expensive areas. Although your SPG earning will be pretty slow, at least when you earn enough for something, you can generally use it without issue. I know HHonors can be an issue with less than Diamond. I don't know how Priority Club is, which seems like another option in your price range. I'll tell you from plenty of experience that low/mid range HHonors properties are better than Starwood properties. On the top end, Starwood properties can be a lot better. Let us know what you decide.
I am a HHonors Silver and have never had any problems redeeming my awards. I believe that the majority of problems come when trying to redeem awards in very popular places (i.e. Hawaii) and/or peak travel seasons. I use my points for shorter vacation trips during the years and have never had an issue finding a hotel with available. Occasionally, the most desirable hotel is sold out but there is always an acceptable alternative nearby.
In addition, HHonors has a better selection of quality lower end properties than SPG.