Let’s take a close look at the options you have when you want to book a hotel.

For this example we’re going to look at four options when you have the Chase Sapphire Preferred® Card.  The Sapphire Preferred is the most recommended card for people interested in traveling on points and miles.  

You can read all about the card perks and benefits HERE.

This same concept applies if you have other travel cards that earn flexible credit card points. 

One of the most valuable uses of Chase points is to use them to book hotel stays with Hyatt. 

Let’s use a weekend in New York City with the family as an example.  Since you’ll be out exploring the city for most of your stay, you decide that you don’t need anything fancy.  We’re going to narrow down the options to something centrally located and that offers queen beds instead of doubles – because who wants to share a double?!?  The Hyatt Place New York Midtown looks like a great fit.  

Here are four options you have to book the Hyatt Place New York Midtown:

OPTION 1:  Book directly with Hyatt and use your Chase Sapphire card as payment

You will earn 2x points on the cost

Cost if paid with the Chase Sapphire Preferred = $1,386.30

Points earned = 2,773 points ~ value of $34.66

Adjusted cost = $1,351.64

OPTION 2:  Book through Chase Travel℠ and use your Chase Sapphire card as payment 

You’ll earn 5x points on travel booked through the Chase Travel portal.  In addition, your annual $50 statement credit for hotel stays will be applied.

Cost after the $50 annual credit = $1,359.26

Points earned =  7,046 ~ value of $88.08

Adjusted cost = $1,271.18

OPTION 3:  Book through Chase Travel℠ and pay entirely with points

If you have the Chase Sapphire Preferred card, your points are worth 25% more when you redeem them through Chase Travel.  

Points redeemed in Chase Travel = 112,740

Adjusted cost = No out of pocket cost

Value of points redemption = 1.25 CPP

OPTION 4: Transfer your Chase points to Hyatt and book with points on the Hyatt website

You’ll typically get more value out of your credit card points by transferring them to travel partners.

Points transferred to Hyatt = 34,000

Adjusted cost = No out of pocket cost

Value of points redemption = 4.08 CPP

How to Calculate Award Redemption Value

It is common to ask yourself if a redemption is a “good” one.  To find the value of redemption we often refer to the “Cents Per Point” or “CPP” which tells you how many cents you’re getting for each point redeemed.

The value given in these examples is based on the value of your Chase points in the Chase Travel portal which is fixed at 1.25 CPP (Cents Per Point) if you have the Chase Sapphire Preferred or the Chase Ink Business Preferred® Credit Card.  If you have the Chase Sapphire Reserve® card your Chase points are worth 1.5 CPP if used in the Chase Travel portal.  

The actual value or CPP of your points can be higher if you transfer those points to travel partners – like Hyatt.  In our New York City example we are getting over 3x MORE value!

Here’s how you would calculate the CPP on transferring Chase points to Hyatt in our example:

(Cash Price – Taxes & Fees) / Points Needed 

($1,386.30 – $0) / 34,000 = .0408 x 100 = 4.08 CPP

In our New York City hotel example you get the most value from your points if you book OPTION 4 and transfer your Chase points to Hyatt to complete the booking.  The value of the points was more than TRIPLE by transferring them to Hyatt.  

Booking this hotel in the Chase Travel portal required over 112,000 points.

You can book the exact same stay for 34,000 points!

Factors to Consider:

Here are a few other factors you may want to keep in mind:

If your goal is to get your travel costs as close as possible to $0, you likely won’t look at OPTIONS 1 OR 2.

If the value is less than 1.25 CPP when transferring your points to a travel partner then it may be more advantageous to book in the travel portal instead of transferring them.  This isn’t common, but does happen.

If you have status with a travel partner it may not carry forward to your reservation if you book in a travel portal or through a third party.

CPP is a tool, not a rule! 

Don’t get over fixated on trying to get the most “value” from your points.  Any redemption that helps you travel more for less is a great redemption.  YOU alone get to determine the true value of your travel endeavors.  

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