Janna, Welcome to FT! I don't think you are wasting time at all! I have scored much better with hotel redemptions than I have with free airline tickets. I only redeem hotel points when the price is upward of $300 per night at great hotels.

Consider getting a credit card that earns hotel points and use it for all of your purchases. I have the Marriott Visa and Starwood AMEX. I have been very pleased with both.

And as stated above: pick one chain to be loyal to so you will end up with points you can actually use. If you don't have many hotel stays don't spread your business too thin.