Trying to understand the HH value equation?
 

I have many Starwood points and many Diners points with just 33,000 HH GOLD points.

Unfortunately, SW is not everywhere. I just tried to book a room at Homewood Suites in Daytona Beach with HH points and was quoted 30,000 points per night for a room selling for $119 pn.

My experience with SW is that a similarly priced room can be had for 7,000- 10,000 SW points. Just last week, I stayed at the Le Parker Meridien in NYC for 24,000 SW points in a room that was priced over $400!

Also, I can pay cash with Diners and then convert just 11,900 points to pay for my room.

Am I missing something here in terms of maximizing my HH point usage?

For one thing, all points are not created equal.

With my Starwood AMEX, I get 1 starwood point/$ spend, because I don't stay at Starwood properties. I have no idea about the points/$ for Starwood spend.

Buf I'm averaging about 5.5 points/$ with my Hilton AMEX. Consequently, I can rack up around 100K/year without ever setting foot inside a Hilton property.

Beyond that, the points required for a cheap Hilton property is usually not worth it. Other than an Opportunity Level award a couple of years ago, my points go for top end stays at Paris, Rome, Budapest, etc., where I really think I'm getting value for the points.

Thanks BL, just to clarify... you average 5.5 points per dollar spent on your HH Amex card? If so, I am interested in getting one of those...

Currently, I rack up 1 point per $1 spent on my Amex Starwood and think that is a pretty good deal.

And, it's a no-fee card.

You (now) get 6 points/$ for spend at Hiltons, gas stations, grocery stores, drug stores, and maybe some wireless bills. All other spend gets 3 points/$.

Spend $20K/year and you get Hilton Gold, although with the new Surpass card this is in a state of flux in my mind.

Anyhow, I arrange almost all of my spend in the 6 point category to go on the Hilton AMEX, and the net result is an average of ~5.5 points/$

If you're interested (and I can't imagine why you wouldn't be if you like travelling in Hiltons), I think there might be some kind of referral bonus, so I can recommend you for that. Also, a sign-up bonus of 10,000 or 20,000 or whatever the current best deal is.

As you've noted, Hilton points and SPG points are not comparable. It costs far fewer points to redeem for a comparable hotel at SPG compared to Hilton. On the other side, you also get far fewer points per hotel stay at SPG.

I think SPG gets 3 points/$ spent for hotel stays; Hilton gets 15/$ (if your double dip is set to Points and Points, which would be the easiest way to compare). This is for the highest level of status at each program, not sure of the exact levels for lower levels. It also excludes promotions which would cloud the waters too much.

So you basically get 5 times more points at Hilton compared to SPG, Hilton credit cards give you 5.5-6 times more points compared to SPG, and Hilton rooms cost 4-6 times more points, in my experience, for an award at a comparable hotel.

In the end I think the points are basically a wash, but you can't compare the number of points you have in one program with the number you have in another.

As others have noted, the HH Value Equation makes sense when you:

1. Pay with your Amex HHonors card.
2. Book online to get the online booking bonus.
3. Redeem points at higher end properties that have daily rates in excess of $250 or more.

I don't think this is unique to HHonors, though. Every reward program has similar limitations.

No one in their right mind would waste 25,000 miles (domestic award ticket) to travel LAX-SFO-LAX, but it can make sense for a coast to coast trip.

Every situation has its variables. In my case, we have enough points to book rooms with points almost all the time. Therefore I am not paying cash very often for hotel rooms.

I am seriously considering getting an HH Amex card, but every $ my business spends with HH card is a $ I don't spend with SW or Diners...

This is going to take a little thinking...

I used 40K HHonors points for a room at Hilton Arc de Triomphe in Paris, which I believe sells for around 300 euros/night, so 30K points for Homewood Suites is definitely not a good use of points!

It really is a program by program, property by property consideration.

I have a SPG booking for 11,500 SPG points per night at a Japan property. To purchase that same room currently costs ~USD370 at today's exchange rates.

I also have a HHonors booking at another Asian Property costing 40,000 HHonors points per night. Purchasing the same room would cost ~USD400

Shouldn't that be 20 points if you're talking highest tier level?

10 points per USD standard.
5 points double-dip
5 5 points Diamond bonus

I'm probably confused. To be honest I get confused between all the different programs and promos so it gets tough sometimes to remember what the "normal" amount of points is.

To the OP's question. I usually aim for ~1 cent per Hilton point and around 3.5-4 cents per SPG point when redeeming. Anything better than that and I feel fine with booking. 30k points for a $119 room rate is .4 cents per Hilton point... Not something I would go for.