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IHG Rewards Club is offering a sale on the purchase of points, valid through September 9, 2016. Through this offer, IHG Rewards Club is offering up to an 80% bonus on purchased points.
You need to purchase at least 10,000 points to earn the 80% bonus — if you purchase 1,000-9,000 points you only get a 40% bonus.
If you max out this promotion and purchase 60,000 points you’d end up paying $690 and would get a total of 108,000 IHG Rewards Club points.
That’s a rate of 0.64 cents per IHG Rewards Club point.
Also keep in mind that if you have the IHG® Rewards Club Select Credit Card you get a 10% refund on award redemptions, up to 100,000 points back each year. That means for the first million points you redeem each year you get a 10% discount.
To do the math slightly differently, the cost per acquired point is really ~0.58 cents, when you factor in the 10% rebate you get when you go to redeem the points, assuming you’re doing so within the above parameters.
Keep in mind that IHG Rewards Club points purchases are processed by points.com, so don’t count as hotel spend for the purposes of your credit card. That means if you buy miles you’ll want to use a card which maximizes your return on everyday, non-bonused spend, like the Amex EveryDay® Preferred Credit Card, Starwood Preferred Guest® Credit Card from American Express, or Citi® Double Cash Card.
Here are the full terms of the promotion:
Offer available for purchases made between 12:00 AM ET August 12, 2016 and 11:59 PM September 9, 2016 inclusive. This is an exclusive, non-transferable offer for intended recipient only and may not be forwarded. Bonus points will be awarded upon completion of the transaction. Bonus points will be awarded to the recipient of the points purchase. Offer is subject to change. Offer cannot be combined with any other offer. Only purchases made online are eligible for bonus.
Price includes all applicable fees. Purchased Points are not refundable and are applicable toward all IHG® Rewards Club awards. Members may purchase a maximum of 60,000 points per calendar year and receive as a gift a maximum of 60,000 points per calendar year. Please allow 24-48 hours for points to post and appear in the recipient’s account. All other IHG® Rewards Club Terms and Conditions apply.
Is it worth buying IHG points with an 80% bonus?
Earlier in the year IHG Rewards Club devalued their award chart, where we saw the cost of free night redemptions at ~400 of IHG’s 5,000+ properties change by 5,000-10,000 points per night. While some properties went down in price, most went up.
Perhaps the worst part is that IHG raised the cost for stays at their top hotels from 50,000 points per night, to a maximum of 60,000 points per night. So that’s pretty unfortunate for those targeting aspirational redemptions.
Still, with a specific use in mind there’s a lot of value to be had. For example, if you’re staying at one of the hotels that costs 60,000 points per night, that’s like paying $385 for a free night, and if you have IHG® Rewards Club Select Credit Card, it’s more like paying ~$345. Given the revenue costs of some of those hotels, that can still be a great value.
I wouldn’t speculatively buy points at this rate just for giggles, but there’s value to be had under the correct circumstances.
It can be an especially good value if you’re able to redeem points at a PointBreaks hotel, where you pay only 5,000 points per night. At a rate of 0.64 cents per point, that’s like paying ~$33 per night, which is an incredible value.
Sometimes we see 100% bonuses on purchased points, so if you don’t have an immediate need for the points, I’d recommend waiting for one of those promotions. However, this can still represent a great deal with a specific use in mind, especially in conjunction with the IHG® Rewards Club Select Credit Card, since you get a further 10% refund on redemptions.
Do you plan on buying IHG Rewards Club points with an 80% bonus?
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