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SPG: I pay 10,000 SPG points, SPG pays hotel $55.00 USD

SPG: I pay 10,000 SPG points, SPG pays hotel $55.00 USD

 
Old Jan 30, 18, 8:58 pm
  #1  
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SPG: I pay 10,000 SPG points, SPG pays hotel $55.00 USD

I'm sure the relationship between SPG and Starwood Hotels evolves around lots of give and take. I imagine both SPG and Starwood Hotels bring something to the table. But, boy, was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.

Now I understand why so many hotels have tried to manipulate Starwood's promise of no capacity controls on standard guest rooms, by adding an upgraded lamp and couch, and calling the room a Deluxe Room, so that the Deluxe Rooms are outside of the hotel's complement of standard guest rooms. The last place that I can remember seeing a hotel push this scheme to the limit, was the Sheraton hotel in Parsippany, New Jersey.
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Old Jan 30, 18, 9:03 pm
  #2  
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Originally Posted by BeantownDisneyFan View Post
I'm sure the relationship between SPG and Starwood Hotels evolves around lots of give and take. I imagine both SPG and Starwood Hotels bring something to the table. But, boy, was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.

Now I understand why so many hotels have tried to manipulate Starwood's promise of no capacity controls on standard guest rooms, by adding an upgraded lamp and couch, and calling the room a Deluxe Room, so that the Deluxe Rooms are outside of the hotel's complement of standard guest rooms. The last place that I can remember seeing a hotel push this scheme to the limit, was the Sheraton hotel in Parsippany, New Jersey.
If the hotel is at 98% occupancy, the hotel is getting a lot more than the $55.
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Old Jan 30, 18, 9:04 pm
  #3  
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If the hotel is closer to capacity, they get significantly more. When the hotel is mostly vacant, even that $55 is worth it.
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Old Jan 30, 18, 10:28 pm
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Another interesting data point will be how much the hotel pays SPG for the starpoints.
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Old Jan 30, 18, 10:44 pm
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Originally Posted by myko85 View Post
Another interesting data point will be how much the hotel pays SPG for the starpoints.
I suspect the management contract doesn't break it down that way.
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Old Jan 31, 18, 1:10 am
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I think the best value for any hotel chain loyalty program points is when you convert their points to airline miles. Just my personal opinion.
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Old Jan 31, 18, 2:23 am
  #7  
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Originally Posted by myko85 View Post
Another interesting data point will be how much the hotel pays SPG for the starpoints.
They pay one cent I was already told this a few times ( this is why I always ask for star points if they offer me cash.
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Old Jan 31, 18, 3:31 am
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Originally Posted by BeantownDisneyFan View Post
I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.
Just for comparison purposes, what was the cash rate on the date of your redemption stay ?
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Old Jan 31, 18, 6:22 am
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Sounds totally fair to me: I would expect a room at a Cat 4 room (outside NY, SF, Boston, etc) to go for ~$150 most nights, less so in other countries. Not bad for a room which might have otherwise gone unsold.
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Old Jan 31, 18, 8:16 am
  #10  
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I paid 20000 points at a luxury collection last week and it equated to roughly 140 euros. Ouch
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Old Jan 31, 18, 8:30 am
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Originally Posted by NA-Flyer View Post
I think the best value for any hotel chain loyalty program points is when you convert their points to airline miles. Just my personal opinion.
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Old Jan 31, 18, 8:31 am
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Originally Posted by BeantownDisneyFan View Post
I'm sure the relationship between SPG and Starwood Hotels evolves around lots of give and take. I imagine both SPG and Starwood Hotels bring something to the table. But, boy, was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.

Now I understand why so many hotels have tried to manipulate Starwood's promise of no capacity controls on standard guest rooms, by adding an upgraded lamp and couch, and calling the room a Deluxe Room, so that the Deluxe Rooms are outside of the hotel's complement of standard guest rooms. The last place that I can remember seeing a hotel push this scheme to the limit, was the Sheraton hotel in Parsippany, New Jersey.
IHG properties get around $25, the HI / HIX / type, the upper scale brands get marginally more. Less than $55 I believe
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Old Jan 31, 18, 8:35 am
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Originally Posted by longtimeflyin View Post
I paid 20000 points at a luxury collection last week and it equated to roughly 140 euros. Ouch
Not too hard in low season:


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Old Jan 31, 18, 9:10 am
  #14  
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Originally Posted by BeantownDisneyFan View Post
I'm sure the relationship between SPG and Starwood Hotels evolves around lots of give and take. I imagine both SPG and Starwood Hotels bring something to the table. But, boy, was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.

Now I understand why so many hotels have tried to manipulate Starwood's promise of no capacity controls on standard guest rooms, by adding an upgraded lamp and couch, and calling the room a Deluxe Room, so that the Deluxe Rooms are outside of the hotel's complement of standard guest rooms. The last place that I can remember seeing a hotel push this scheme to the limit, was the Sheraton hotel in Parsippany, New Jersey.
You're coming at this the wrong way from the point of economic analysis: some revenue is better than none. Lucky is the hotel with 100% paid occupancy night after night! The marginal cost of an award guest is pretty low, even where elite benefits are due.
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Old Jan 31, 18, 9:29 am
  #15  
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Originally Posted by BeantownDisneyFan View Post
......was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG......
If the hotel is not close to full, $55 is better than zero. If hotel is close to full, they get paid average room rate for that night. It is not a fixed conversion rate.
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