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IHG Rewards Club is offering their first non-targeted 100% bonus on purchased points for 2017. The bonus is valid for points purchases through February 17, 2017. Through this offer, IHG Rewards Club is offering a 100% bonus on purchased points when you buy at least 5,000 points in one transaction. This is as good as their bonuses on purchased points get.
If you max out this promotion and purchase 60,000 points you’d end up paying $690 and would get a total of 120,000 IHG Rewards Club points.
That’s a rate of 0.575 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 ~0.52 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 February 14, 2016 12:00 AM ET and 11:59 PM February 17, 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 72 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 a 100% bonus?
Last 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. Last month IHG had a further devaluation. While some properties went down in price, most went up.
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 $345 for a free night, and if you have IHG® Rewards Club Select Credit Card, it’s more like paying ~$310. 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 0.575 cents per point, that’s like paying ~$29 per free night, which is an incredible value.
This is the first 100% IHG bonus on purchased points we’ve seen in 2017. Bonuses on purchased IHG points don’t get better than this. While this isn’t for everyone, with a specific use in mind it could make sense to buy points.
The deal gets even better if you have 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 a 100% bonus?