the phoenix

We have 890000 Hilton points and I would ideally like to use them on a vacation splurge somewhere.

But just found we have to stay at a Homewood suites for 3 nights. Either 209 a night or 50000 pts a night. I don’t know the metric but it sounds like it’s a waste of points for a Homewood, right?

craigthemif

Is the $209 pre or post tax?

If pre, it's in the range of where I would try to burn some points. (0.4-0.5 cents) But if you've got the Aspire credit card, the current promo offers 54 points per $, which means you probably want to pay cash in marginal situations...

The _Banking_Scot

Hi

At 209 per night I would probably use cash.

If you have hh status you could get a 5th night free at other hotels ( ie only pay for 4 nights but stay for 5 nights- standard rooms) which might be a better use of points

Regards
tbs

the phoenix

209 pre cash. I’m figuring we can use 900k pout. S for some really nice properties. Have Hilton Diamond cc too

Jaimito Cartero

I value Hilton points at .4-.5 of a cent. So you’re pretty close to your $209 value. (.4=$200, .5=$250 a night) Always look at your total price including taxes that you would pay on a cash stay. Also, check your nights one or two at a time. Sometimes they’ll show one night at 40k, and others at 50k.

Also take into consideration points you’d earn for the stay, especially if you have a Hilton credit card.

For me, the sweet spot on Hilton award redemptions is the 5th night free. I try to book in 5 night blocks to get the 20% points discount on the last night.

hhdl

The only thing I would add is that carrying a large point balance could definitely be argued to be suboptimal: the points are unlikely to dramatically increase in value. So if a redemption is at all close to reasonable value and is a sufficiently small percentage of your balance, it won't make a huge difference.

The rough heuristic I've settled on is (I very rarely spend 5 nights at the same property, so 5th night free isn't really relevant for me)

* take the amount of points you'd get after promos and credit card (if paying with a non-HH credit card, you may want to consider non-HH points/cashback/miles as an offset)
* add that to the redemption rate (you might multiply the redemption rate by 25% if your expected redemption pattern is to make use of 5th night free)
* subtract some percentage of your point balance corresponding to how much you subscribe to earn-then-burn (I personally use 10%... if your intention is to wait a long while for an amazing value, then a much lower percentage is relevant)
* divide the total paid (including taxes etc.) by the previous result
* If it's less than 0.5 cpp, then definitely pay the cash rate (from my perspective you're buying points at their fair value and getting lodging for free), if it's more than 1 cpp, definitely redeem, and in between is a judgement call

So working for your example with my level of earn-then-burn and 5NF preference:

Diamond + Aspire, current promo (assuming), $209 cash rate, 50k points
Assumption $21 in taxes

* Base earnings + Diamond bonus + promo bonus + Aspire = 54 pts/$ => 11,286 pts + 294 pts for taxes on Aspire => 11,580 pts
* plus 50k pts => 61,580
* minus 90k pts => 0 pts
* $230/0 => infinite => redeem

But if your plan is to save for 5+ nights in the Maldives, your earn-then-burn preference might be 1%

* 11,580 as before
* plus 62,500 pts => 74,080
* minus 9k pts => 65,080
* $230/65,080 => 0.35 cpp => pay the cash

In theory this approach can choose between cash rates, at least those with similar cancellation policies. The double point rates which are typically 10% more than the Honors discount rate per night often end up being my cash rates of choice, though with the new breakfast/dining credit, I might consider breakfast included or extra credit rates at those properties. In this case, the likely pricing for the double point rate ($230 + $23 tax) wouldn't affect things much.

In theory this sort of thing could be applied to Points + Money bookings to find a sweet spot, but the math would get quite complex, so I generally don't bother.

sbams

I really disagree but it depends on your situation and preferences. I keep above 1 million points in my account because I don't need to use them, even if they devalue. I am sure.. without evidence, that they are the reason that I consistently receive VIP treatment wherever I go. Upgrades.. suites, benefits. It's a choice I make and enjoy.

hhdl

OnQ does, IIRC, display the current point balance on the profile (not any elite qualification info, though: to the extent hotels prioritize elites by point balance, it's likely that Aspire diamonds get treated better than stay diamonds and possibly even night diamonds). That said, I can't say I ever took the point balance into account when upgrading elites.

Baze

It has been mentioned but I don't think ever proven that some hotels look at your points balance and treat you accordingly. Which I think is totally wrong. Should be status and they should be happy that you use your points. However, as I don't do much traveling anymore I try to build up to about 1 million points to have on hand for those special trips as I don't earn many points a year anymore. Thank you lifetime Diamond.

the phoenix

Thanks for all the replies. Didn’t need the room after all that. We “fell” into being Hilton Diamonds this year since we needed a place to stay for 3 months and also got that Hilton card (I don’t recall if it’s Aspire but it’s 450/yr).

We figure that after 3-4 months hotel living plus working through the pandemic, may as well rack up points for a post pandemic splurge at a really nice property ! (That would be another thread!)

Super Mario

While you didn't end up needing it, I would give one more example.

I don't believe it was the best valuation. However, when redeeming Hilton points, be prepared the accept the lowest room type. Otherwise, even the slightest upgrade can be a ridiculous point requirement. In a Homewood, it is generally a lot more acceptable to take any room IMO. One thing to consider when sitting on a bunch of points.

The Road Goes On Forever

Agreed. I could care less about that and it has never once entered my mind when assigning rooms and/or if I choose to upgrade someone.

I assume there are properties/people out there that take point balance into account but I've never met or heard of one.

FWIW, million point members are fairly common. I see them regularly. Going over 5 or even 10 million is when you start getting into rarefied territory. Even then, they get what they reserve.

smmrfld

Not exactly sure how you'd like to receive "proof", but as a LD with a consistently very high points balance (frequent travel by wife and I, mutual fund account, meeting/event points, earn faster than burn), I often receive comments from FD staff about the balance and the additional upgrade/amenity/freebie that they're providing specifically because of the points total. This occurs at brands across the HH spectrum and at properties where I am not a frequent or returning guest.

fwfdan

Another thing to consider is if the 209 rate is refundable. I tend to compare semi-flex rates to the point usage decision. Unless I am 100% sure I will not cancel, which has been rare in the last few years.