Points only have potential value until redeemed.

Points and miles never redeemed have no value.

7 nights at a Ritz-Carlton for 250,000 Marriott Rewards points is likely to have a much higher value than 0.7-0.9 cents/point. 250,000 points would have a value of $1,750 - $2,250. There are not many Ritz-Carlton properties available at $250/night by any consumer travel strategy.

There are many opportunities for a traveler to get a much higher value than $2,000 with the 250,000 Marriott Rewards points.

I wrote about my thoughts on hotel points exchange rate theory in a blog post from February. Feel free to comment on my blog. I like discussion.
I would like to read a variety of opinions and thoughts on the topic.

I developed the theory based on the hundreds of discussions here on FlyerTalk over the years concerning the value of a mile or point and combined with my own experiences of spending several million miles and points.

http://loyaltytraveler.blogspot.com/...te-theory.html