It seems like an odd question to ask: can buying hotel points actually save you money?
Most people treat hotel points as an afterthought, rather than what they really are: an alternative currency for hotel nights at a fixed rate.
In this post:
How Many Points Do I Need For A Free Night At Hyatt?
World of Hyatt, the frequent guest program of Hyatt Hotels, has an eight category award chart with a night at a hotel ranging from 5,000 points to 40,000 points.
In addition to earning points on paid stays at Hyatt hotels, you can buy up to 55,000 points outright every calendar year.
Buying Hyatt Points To Save Money
Multiple times per year, World of Hyatt offers up to 40% bonus when buying points. There is a current offer until 31 December 2019 which brings the price down to ~1.71 US Cents per point.
This means anytime the paid rate for a Category 1 Hotel is above US$85.50, you will save money by buying points. Similarly with a Category 2 Hotel above US$136.80 and so on.
| Hotel Category | Standard Room Points Per Night | Cost Per Night At 40% Bonus (1.71 US Cents Per Point) |
| 1 | 5,000 | US$85.50 |
| 2 | 8,000 | US$136.80 |
| 3 | 12,000 | US$205.20 |
| 4 | 15,000 | US$256.50 |
| 5 | 20,000 | US$342 |
| 6 | 25,000 | US$427.50 |
| 7 | 30,000 | US$513 |
| 8 | 40,000 | US$684 |
Case Study: Hyatt Regency Kathmandu
The Hyatt Regency Kathmandu is a 5 Star hotel and resort in the capital of Nepal that every mountaineer passes through to get to Everest.
We were discussing this points hack over drinks with our friends at Cut Lunch Adventures as they pass through Kathmandu regularly but have never stayed at the Hyatt Regency.
Looking at rates for June, which is during Everest climbing season, the base rate is US$131 per night for a fully flexible Members Rate which is cancellable until 48 hours prior.
However, when you add the taxes and service charge the actual price of the room is US$162.21.
World of Hyatt redemptions are available on the same date for 5,000 points per night, which we know from the above able would cost us US$85.50 to purchase.
So in this situation you save 47% by purchasing World of Hyatt points rather than paying a cash rate at the Hyatt Regency Kathmandu.
Tip: World of Hyatt redemptions are fully flexible and able to be cancelled within 24/48 hours of the stay without penalty.
Things To Remember Before Buying Hyatt Points
While there is great value to be had from purchasing Hyatt points, I always keep the following in mind:
- Determine if the paid rate is higher than the amounts in the table above
- Check there is award availability for the nights you want to stay at a particular property
- Do not buy points unless you have a specific redemption in mind
- Remember the 55,000 purchased point per year limit
Summary
Purchasing Hyatt points can be a no brainer for the savvy traveller. Do your research before committing to a paid rate and you could be enjoying excellent Hyatt hotels for less!
