Up To 40% Bonus On Purchased Hyatt Points Through May 31, 2015

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Through May 31, 2015, Hyatt Gold Passport is offering a 40% bonus on the purchase of points. This is the first non-targeted 40% bonus on purchased Hyatt points which we’ve seen in nearly two years.

Hyatt-Points

If you max out the promotion and purchase 55,000 points you’d receive a total of 77,000 Gold Passport points. That would cost you $1,320, which is a rate of ~1.71 cents per Gold Passport point.

Keep in mind that this promotion can get significantly more rewarding, though, given that Hyatt is offering a 20% refund of points on award redemptions for those with their co-branded credit card. This is valid for redemptions through July 31, 2015, though you must have already registered to take part in the promotion. Factoring in a 20% refund in points, that would be like paying ~1.36 cents per Hyatt Gold Passport point. That’s actually a really good price.

How does this stack up to Hyatt’s past promotions on the purchase of points?

I value Hyatt Gold Passport points at ~1.5 cents each, though they can definitely be redeemed for a lot more than that. I just think that’s a “fair” number. In this case there are some circumstances under which it can be really lucrative to purchase points.

For example, at the rate of ~1.71 cents per point, you can purchase enough points for a free night at a Category 7 property for~$500, while paid rates at those hotels are often $1,000+ per night. For example, rates at the Park Hyatt Maldives are often $1,200+ per night:

Park-Hyatt-Maldives

Park-Hyatt-Maldives-123

You can potentially get even more value out of your points by using Hyatt Points + Cash redemptions.

Hyatt-Cash-Points1

As a Gold Passport Diamond member, Points + Cash redemptions are especially awesome because:

  • Confirmed Diamond suite upgrades can be applied on Points + Cash reservations
  • Points + Cash reservations are eligible for elite stay & night accrual, as well as points accrual
  • Points + Cash reservations count as qualifying nights for the purposes of promotions

On the other end of the spectrum, it can also make sense to purchase points for some lower category hotels. For example, I’ve stayed at the Grand Hyatt Santiago, which is a Category 2 property going for just 8,000 points per night.

That means you could purchase enough points for a free night for ~$150. Meanwhile sometimes paid rates at this hotel are more than double that.

Grand-Hyatt-Santiago-Rate

Neither of the above values factor in the 20% rebate, if you are redeeming in the next few months.

As a reminder, Hyatt points purchases are processed by points.com, so wouldn’t count as hotel spend for the purposes of credit card spend.

Bottom line

As is always the case in this hobby, you should crunch the numbers and see if this promotion works for you.

For what it’s worth, a 40% non-targeted bonus on the purchase of points is the best offer we’ve seen in a while. Beyond that, the current 20% rebate on points redemptions makes this promotion even more lucrative.

So while it’s perhaps not an offer I’d personally take advantage of just for the purposes of hoarding points (given that I have a large Gold Passport balance already), with a specific use in mind it can be a great deal.

Do you plan on purchasing Hyatt points with a 40% bonus?

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Comments

  1. Ben, do you regularly purchase miles/points? If so, why? I’ve never seen a good deal, perhaps because I wouldn’t pay 1.5-2 cents per point/mile.

  2. @Lucky sez: “As is always the case in this hobby, you should crunch the numbers and see if this promotion works for you”…

    …and I agree wholeheartedly!

    The determine if this is a good deal for you, you need to just come up with a scenario where it would be cheaper to purchase points than to pay cash. Here are back of the envelope calculations for such a scenario:

    A 5-night revenue stay at Park Hyatt Siem Reap @ ~$400/night would cost me $2,000, excluding taxes.

    If I purchase 77K GP points for $1,320, and do a 5-night award stay, would I come ahead? (the answer is “yes!”)

    PH Siem Reap is a Cat 4 hotel, which would cost 15K/night on points-only or 7.5K +$100/night on C+P.

    A) For 5 nights on points only I would pay: 15K * 5 = 75K
    and I would save $2000 – $1,320 = $680 + 2K points.
    Putting the cash saved back into the cost of the points, I would get: $1,320-680 = $640, meaning that I would effectively pay only $640 for the 77K points, i.e., 0.8 cent/point!

    B) For 5 nights on C+P, I would pay: 37.5K + $500 (total cash $500 + $1,320 = $1,820)
    and I would save $2,000 – $1,820 = $180 + 37.5K points. I would use just half of the 77K points and still save $180!

    I intend to live out the scenario I just modeled, which is why I am really leaning toward purchasing 77K GP points for “just” $1,320.

    It is a no-brainer for someone like me because (a) I like to stay at Hyatt properties overseas where Hyatt has carved out niches for themselves in a number of cities [e.g., Siem Reap, Taipei, Manila, HoChi Minh City] with no Hilton (my #1 program) presence; (b) I have no stomach or the time to churn credit cards to earn points, so I prefer to earn most of my points through revenue stays, which won’t earn me enough GP points because GP is not my #1 program; and (c) as a GP platinum “elite” who would earn at most 8.75 points/$ on revenue stays paid with the Chase Hyatt CC, I would need to spend 77K/8.75 = $8,800 on paid stays in order to accumulate 77K points; this deal would get me 77K at 1/7th the cost! 🙂

  3. Hoping to spend three nights at the PH Maldives next summer, so this might be a good deal for me.

  4. So very tempting. Too bad I won’t need this much points until later 2016 when I go to Paris. Don’t really want to purchase points this early because of the danger of devaluation between now and then.

  5. Hi, Thanks for the info. I am wondering which credit card should I use to purchase hyatt points? Will I get 3X more gold points if I use my Hyatt Visa card?? OR should I use CSP? Please let me know! I just started collecting points a couple month ago and a complete newbie 🙂

  6. @ Ying — Since the points purchase is processed by points.com, it won’t qualify as hotel spend. I’d use the Chase Sapphire Preferred.

  7. @ steven k — Whichever card maximizes your return on everyday spend. So something like the Barclaycard Arrival Plus, Chase Sapphire Preferred, SPG AmEx, etc., would be ideal.

  8. Wish we could have used the Hyatt gift cards which lots of us got for 15% off late last year.

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