Recently I was asked how to really maximize SPG points. I don’t think I’ve written about this before, and heck, maximizing value is 100% what this blog is about. So I wrote out a step by step on how you can get the absolute most value out of your SPG points.
I have been satisfied to redeem for low level weekend stays – Cat 1’s are 2,000 – 3,000 points, and Cat 2’s are 3,000 – 4,000 points. But, there is a value that’s even better than this. Let me show you.
1) Log In
2) Click Here
3) Select American Airlines and put in your AA number
4) Put in 20,000 points and you’ll get 25,000 AA miles
And there you have it, step 5 is to enjoy your AA miles.
Conclusion
Any questions?
Starwood points are much harder to earn, view the infographic of Best Hotel Rewards Program. It takes waaaaay more money to earn a free night with SPG than it would any other program.
Yet, their points transfer 1:1 to most airlines, and 20,000:25,000.
The fact of the matter is, the value is way better for airline miles than it is for hotel redemptions. Because ultimately, value is not the price tag of the hotel, but what you would have paid. And if you’re savvy enough to be reading this blog, you’re savvy enough to get hotel points way more cheaply and easily than you likely can SPG points.
In other words, getting a nice hotel for cheap is easy, so easy. But international flights are always expensive.
Of course, if you are set on airline miles and you honestly don’t need to pay for flights anytime soon and don’t have other hotel points, totally redeem those suckers for hotels. But the value of a mid to high category SPG hotel is a oneway flight to Europe on AA. And the simple thing I want to ask is:
Is the value of one hotel equal to one international flight?
No. Of course not. I understand people are addicted to luxury and justify that with a misconstrued definition of value. But just call it like it is, and say “I want ultra-luxury” instead of “value”.
And again, even if the bar is set at ultra luxury, I can more cheaply get top end Hyatt and IC stays than SPG stays.
Do you consider a Nights & Flights redemption good value?
Yea sure. Never done it but I totally would. For a cat 3 it’s basically 2,000 points a point.
Better idea – wait till US Airways (or depending on your travel patterns, possibly BA) come out with the semi-occasional transfer bonuses, and transfer there
3 years in a row I transferred miles to US Airways at a 50% bonus over the norm. 1 SPG turned into 1.875 US
That would be very nice. If you wait long enough they’ll be AA miles anyways. :-p
Dude, that is so true. Nicely put.
thanks 😉
Hey Drew,
Just thought you might want to know. I don’t think that the 5th night free benefit applies to Cat 1 & 2 SPG properties. Tried to redeem one for Le Meridien in Cambodia and it wouldn’t let me. I checked the T&C and sure enough, 5th night free is for Cat 3 +. Lowers the value for hotel redemptions even more in my book because I prefer to redeem at low end properties.
Bah. Soon as I saw the second sentence I knew you were right. Totally forgot. That’s what happens when you never actually use something. lol
I have over 100K spg points and can’t figure out how to use it. Transfer makes no sense as I have over 500k miles in each of AA, US, DL and UA…
Well, at the bottom level it’s really a great value. 4th night free is nice. And Nights and Flights for category 3s and 4s are a great deal.
Sounds like a good problem to have though.
@ Alan, how do you end up with 500k miles in each for AA, US, DL, and UA? how often do you burn your miles for travel? Or you just save it , how long does it take for you to save that amount?
But I loved the St. Regis in Florence…….
:-p I’d love any St. Regis.
I completely agree with this analysis. I recently had this argument with someone who claimed he was getting 5% on his starpoints because he could have booked the hotel for $600 @ 12k starpoints. The same hotel (same stars, and identical reduced from price) was on the hotwire hotdeal for $130 and he failed to get the point that he wasn’t getting a 5% return. I have no problem making that gambe for $130.
You previously completely disagreed Drew’s practice to MS hotel points. Now you completely agrees with him to accumulate (or MS) SPG points to miles. This is funny.
As always, it depends on how people are using their miles and points. The needs of a full time globe trotter are very different from the needs of someone who might take one overseas trip per year. For the latter, free air tickets are easily obtained with credit card sign-ups and no additional miles are needed. If you can only take one or two major trips a year (and that’s most folks) then keeping points for hotel stays becomes more important.
Agree. I have ~4+MM airline miles and generate more than I spend in most years. But I find I rarely have significant bank of hotel points since I burn them at higher velocity (a few flights a year vs ~20-30 nights at top tier properties). As such, SPG are more valuable for hotel stays than airfare.
Totally agree.
I erroneously assume that people who read drew’s blog travel more than teh average person..
does it even make sense for people who don’t travel a lot to put their energy into figuring out miles and points.. i mean wouldn’t you do a lot better with cash back type cards like arrival, amex bcp etc?
there is a lot of details you need to know before you can get good value out of miles and points..
Hey Drew,
I was just debating whether to keep my SPG Amex or cancel it before the annual fee comes due. I am not a huge spender. I don’t own a business, so I’m not racking up 10k Starpoints a month. I also have other cc like the Chase SP and Amex everyday which give me 2x points for certain categories, whereas it seems to take forever to rack up SPG points at 1 point per dollar. What do you think I should do? Keep or cancel?
“I can more cheaply get top end Hyatt”
Of which there are VERY few outside of major world cities. Park Hyatt and Andaz are basically the only Hyatts that qualify, and there’s maybe a total of what? 40 total in the whole world? And how many of them are outside of major cities? 5? 10?
SPG is great for us because there’s a nearly unlimited supply of high end properties in leisure locations. We don’t really like Hilton brands (Conrad, Waldorf) after some bad experiences, and Marriott/Ritz has absurd award pricing, so SPG is tops for luxury in our view…
I’m having a hard time believing this. Please give us some examples where using SPG for luxury properties made sense. You will find other alternatives there..
Unless you pick specific properties in london, paris, nyc; most likely you could have done better by using barclays arrival and using the the cash back for either a paid bookign through virtuoso or citi prestige 4th night free benefit
Drew,
I agree w/ u that SPG points are more valuable for airline xfers than their own hotels except the Cat1/2 specially now that all the B&B options makes hotel points “less valuable” (for other hotels, their pts are more valiable fo their hotel stays like Hyatt/CC/IHG etc.). Anybody in their right mind shouldn’t spend on SPG luxury hotels on pts..
Given that Starwood points are hard to earn (2 credit cards only + paid stays), WHY in the world is everybody talking about transferring these points to AA miles (or other partners) when those can be earned a while lot easier?
You said it yourself Drew – 3,000 points for a stay is a pretty good deal, especially when such properties can cost well over $100/night + taxes. For me, paying 3,000 points a night will result in way more value than 25K AA miles. Perhaps double the value or more, as I don’t value AA miles that highly.
It’s an option – for sure, but the 25% bonus is there for a reason and that reason is because SPG points ARE very valuable. I guess it all comes down to how much individuals value their points and their priorities. Perhaps not everybody has the opportunity to book cat 1/2 SPG properties.
At the end of the day, this is an option that may or may work for some, and not for others. 🙂
you are right but there aren’t many low cat spg properties where travelers will go to. Unless you want to make your plans around where low cat spg hotels are found
This is the thing I wish someone told me about SPG and you are the only blogger who is saying this. I now understand that SPG as a good hotel program is a myth.. you can do better. Just like the CSP. Plenty of better cards.
I have collected 80k spg but never found an opportunity to use them. Always found it better to pay cash or hyatt c+p or citi reserve free night or choice points..
will covert my spg to alaska.. that redemption on cathay looks good
Now that AA has devalued its miles, is it still the best to transfer SPG points to AA? perhaps better to other programs?