Should You Buy Hilton HHonors Points Through Daily Getaways?

As I first posted about a couple of weeks ago, Daily Getaways is back earlier than normal this year, and is a great opportunity to purchase hotel points at a discount. It’s sponsored by the US Travel Association, and every weekday for five weeks they’re offering discounted travel packages.

So far this week we’ve had the opportunity to:

Daily-Getaways-2015-1

Well, today at 1PM ET Hilton HHonors points are going on sale.

Hilton-Daily-Getaways

But is it a good deal?

Hilton HHonors promotion

Here’s a chart with the Hilton HHonors points packages which are on sale today:

Number Of PointsPackage CostCost Per PointNumber Of Packages
100,000 Hilton HHonors$5000.5 cents/point160
150,000 Hilton HHonors$7500.5 cents/point200
250,000 Hilton HHonors$1,2500.5 cents/point200

Let me start by predicting that this offer won’t sell out instantly, unlike the opportunities to purchase points from Club Carlson and Hyatt Gold Passport.

I value Hilton HHonors points at ~0.4 cents each, while they’re selling them for ~0.5 cents each through this promotion.

Can you get more than ~0.5 cents of value per Hilton point? Absolutely.

I stayed at the Hilton Garden Inn Frankfurt Airport several weeks ago for 40,000 HHonors points. The paid rate was 489EUR.

Hilton-Garden-Inn

Does that mean I got over one cent per point of value? Since I would have never paid the 489EUR rate, I’d argue not. But if I had picked the points up for 0.5 cents each it would have been like paying ~$200 for the stay. That’s a deal I can live with when most hotels in the city are sold out, though hardly one I’d be excited about.

There are certainly other properties where you can get quite a bit of value as well.

For example, the DoubleTree Beijing costs just 10,000 points per night, so at a rate of 0.5 cents per point, that’s like paying $50 per night.

DoubleTree-Beijing

On the other end of the spectrum, the Conrad Koh Samui costs 80,000 points per night, so at a rate of 0.5 cents per point, that’s like paying $400 per night, which is still substantially less than the cash rate.

Conrad-Koh-Samui

Do keep in mind that Hilton HHonors offers a fifth night free. So if you stay for that long, that potentially lowers your per night cost a further 20%.

Bottom line

While I value HHonors points at ~0.4 cents each, there’s no denying that you can redeem them for more, as I’ve shown in the above examples.

That being said, under most circumstances I don’t think you’ll get more than 0.5 cents of “real” value per point.

I’m not a buyer at this price, but that doesn’t mean you shouldn’t be.

Do you plan on buying HHonors points for 0.5 cents each?

Comments

  1. And we learned yesterday that a premier suite at the Hilton in Cabo *usually* runs for $3,500 or just over one million HH points. In this case, it would be better to pay cash, rather than purchase 4×250,000HH=$5,000.

    Unless of course you can get the same room for 279 HH….

  2. I’m a big defender of the HHonors program, but even with that said I value the points as worth even less than Lucky — I’d peg their value at .33 cents per point. That’s commensurate with their standard credit card value (3 points per base dollar spent) and about what I can expect to get in value. So definitely not a buyer at .5 cents per point, particularly when they’re so damn easy to accrue

  3. While I generally agree with your analysis, your example of the HGI at FRA airport is completely out of reach with reality. You are listing a room for € 489, while the hotel is usually available for € 100…140, even when booking only a couple ot days ahead. During sales, you can even get the Hilton FRA airport for below € 90 / night.

  4. @ David — As I said, it’s an extreme example, and I valued the stay at nowhere close to “retail cost.” That being said, for the night I was there, virtually everything was sold out or in that price range.

  5. @Lantean: You say that you would “buy at 2c per point… not like this”. Tody, you would be able to buy points at 0.5c per point. So why not buy today?

  6. Once more, the value of a redemption depends on what one has in mind. Throwing around a redemption value of 0.4 cent/point (cpp) is meaningless. The way to see whether or not this offer is good for you is to model a real situation, a redemption that you are contemplating.

    I am planning a 5-night award stay at Conrad Koh Samui around New Year’s eve. The best available rate for a standard room will be $988 or 95K HH points/night as a standard award.

    As a HH Diamond booking a 5-night award stay at this property during this time, I would get the 5th award night for free or 20% off 95K = 76K/night.

    For the 5 nights I will need

    76K * 5 = 380K HH points [I would 95K points thanks for the 20% off]

    This means that, if allowed, I could purchase a 250K package for $1,275 and 150K package for $750 = 400K HH points for $2,000 a be able to afford this 5-night redemption.

    Why would this be significant? Because if I paid cash for it, this 5-night stay would cost me: $988 * 5 = $4,940. By purchasing the points I would save $4,940 – $2,000 = $2,940, which is really AL LOT of money. Not only that, but my redemption rate would be $4,940/380,000 = $0.013/point = 1.3 cpp, which is much higher than the value of 0.4 cpp that is routinely quoted.

    Purchase @ 0.5cpp and redeem @ 1.3cpp. It is a no-brainer but should I go for this deal? No, I won’t simply because I expect to rake in more than 1M HH points from my paid stays and HHonors’ targeted and ‘global’ promos — some of which have already been quite lucrative — this year.

    The best way for ME to earn HH points is through paid stays. I’ve never needed to purchase HH points, even as just a top-off to afford a redemption.

  7. I would never speculatively buy them at .5c/point, even though I consistently get more value than that.
    It’s just too close to their retail value to bother having them sit around.
    My last four HH points bookings have valued at 2.2c/point (a super peak season booking that I was happy to get for a date/event I want to be at), 0.7 c/point, .5c/pt and 1c/pt.

    But if I really need points, MS can generate them for .33c/point without trying very hard, and get even more by more credit card signups.

  8. @Lucky — In a different world in which I had no clue about the mile/point game but still had the same passion for traveling to exotic places, yes, I would pay $1,000 — I can afford it. Fortunately, I know about the mile/point game and play it rather well, so I do not have to pay that kind of money out of pocket, but — anticipating you next question — that does not change the value of my redemption. It is what it is regardless of whether I would be willing or able to pay for it. The subjective feelings about it might different, but the objective value is what it is…

  9. @Jason – Are you sure you can convert HHonors points to HA miles and not just the other way around? Based on your link, looks like you can only convert HA miles into HHonors points.

    If what you say is true, that would be an amazing value.

  10. I checked out the conversion rates on Hilton Honors website and its 10k HH points for 1500 HA miles. Ditto for exchanges to AA. United and Delta are a 10:1 ratio. Not very good in my opinion but I don’t remember being able to do this in the past so it’s definitely an option.

  11. The HH points don’t seem to be very popular, all offers are still available. I bought 400k myself, as the price works out very well for my specific purpose.

  12. @David — Rather than “popularity”, it could simply be that there are easier ways earn to loads of HH points…

  13. I bought 150,000 points to top up my account (since my credit card spend priorities lie elsewhere, I earn relatively few HHonors points in the normal course of events). It’s worth it to me to maintain a few hundred thousand points in my account so I have them available when the cash rates are high or the hotel is mis-priced too low on points.

    The packages are now sold out. Two of them were gone 4 hours after the offer opened; now all are gone 9 hours later. (Two years ago, right after the devaluation, packages were still available weeks after the offer opened. Last year all sold out the same day. Not sure whether the same number of packages are offered each year.)

  14. My default long weekend getaway is to the doubletree in Johor (malaysia), and it’s a 5000pts per night category property. So for me this is an absolute steal!

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