IHG One Rewards Devaluation
Early this year, I took advantage of some then-current options to cheaply obtain top-tier IHG Diamond status. Still feeling the mojo after I obtained it, we did the same for my wife. Not coincidentally, we’ve broadened our relationship well beyond our Holiday Inn Express redemptions, primarily at Kimpton properties. Things had been going swimmingly, until yet another IHG devaluation appeared, of course. Indeed, it seems whenever an algorithm is introduced in our hobby, travelers largely end up the losers. But my family and I hadn’t been affected in the last couple months since this development, though. We didn’t plan any IHG redemptions, last-minute or long-term. But a few days ago, the IHG One Rewards devaluation started hitting home more. Here’s my recent discovery and how this underscores an even bigger problem for IHG loyalists.
An Aspirational Stay, Maybe?
As I decided to focus more on the IHG program in late 2023 and early 2024, I came across the upcoming Regent Santa Monica Beach. I’ve been intrigued by an aspirational stay there ever since, and the property has begun accepting reservations for its planned opening this month. Curious how much reward nights would price out, I picked a random weeknight in mid May; 176k points for a generously-sized 720 square foot room at the impeccably-located property. I checked my dates, thinking I’d accidentally selected two nights. Nope, the property priced out at 176k points for one night. I decided to take two children off the search, opting just for two adults – same price. Cash rates on that same night start at $904 before taxes. That’s before the $90 “amenity fee,” applicable whether one books with points or cash. (This fee includes a daily $50 resort credit, but still…) Taking that amenity fee into account with taxes, that cash rate turns out to be $1,155.99 all-in.
I hopped around the calendar looking at various single nights for award stays. The Saturday following the above mid May weeknight was 195k. I saw a rate as low as 160k nightly, but that appeared to be an anomaly. Overall, nightly rates seemed closer to 200k than 100k nightly. A random weeknight in late June came in at 301k; the following Saturday night was 325k. I’d seen enough.
Yeah, No
I previously theorized the property would cost a pretty point, maybe in the mid-100k range nightly. Perhaps I’d find a “deal” closer to 100k nightly. Not even close. Gone were my hopes of stacking a fourth-night free stay with our Diamond benefits. We aren’t hoarding enough IHG currency to pay for such a visit. But even if we were, we’d probably opt out, anyway. That’s what I’m getting into next.
More Sane Options
We’re deciding to focus these IHG points on other brands, such as Intercontinental, Hotel Indigo, and Kimpton. Of course, we expect to feel the devaluation a bit here, but perhaps not so harshly as the Regent. And my cursory searches reflect we won’t feel any major devaluation pain at Holiday Inn and Express properties, where our family historically redeemed most.
It’s important to note that with other programs, my family and I have been able to have it all – from memorable award redemptions at the most aspirational properties to everyday value at limited-service properties. This just isn’t the case for us with IHG, and that’s even more obvious now.
An Unrewarding Task
So why can’t we have it all with IHG? More appropriately, we shouldn’t strive to have it all. This leads me to my next topic. One of the least-rewarding chores in our hobby is building up an IHG points balance.
Transferring into IHG
Let’s start with the approximate value of IHG points. I don’t overly focus on point values, knowing my goals take precedent. But I don’t ignore the numbers, either. MtM has historically considered IHG points to be worth 0.58 cents each, on average. Transferring Chase points to IHG makes zero sense/cents – to cashout fans like me, but most everyone else, too. That’s because Ultimate Rewards are worth a penny each, at a minimum, for cash back directly with Chase. (Maybe some can justify a small transfer to top off for an IHG redemption.) Otherwise, most everyone is better off cashing out Ultimate Rewards and booking a paid rate, even when there’s a transfer bonus to IHG currency.
Earning via Credit Cards
But what about stocking up via a cobranded credit card? That ain’t pretty, either. Beyond spend at their own hotels, the IHG Premier earns 5x in travel, dining, and gas categories, and 3x everywhere else. Taking into account the average point value, one can do better in the 5x categories with a variety of other cards. Any 2% cash back credit card easily bests the Premier’s 3x category. Some can justify big spend via a new card welcome offer or big spend bonuses (I did, particularly with some time-sensitive spend options). But overall, savvy consumers are discouraged from significantly earning via IHG Premier spend. That’s pretty much the same story with the business card version, as well.
Terrible Together
It’s important to note that the cent per point value of a Regent Santa Monica Beach stay on that mid May date isn’t far off the MtM average. But in my experience, most hotel loyalty programs offer substantially higher cpp value at their top properties. Not really at IHG, it seems. IHG’s exorbitantly-high redemption rates in combination with inferior earning options should lead many to justifiably ignore the program and its properties.
IHG One Rewards Devaluation – Conclusion
I’ve come and gone with IHG before. Time will tell if I do so again. I’m still cautiously optimistic of obtaining solid redemptions (and some excellent breakfasts) while a Diamond elite. Right now, I have no plans to requalify for 2026, but I’d love IHG to give me a reason to do so. I’m only earning IHG points these days through limited-time spend bonuses like 7x at dining and grocery stores (up to $1k), but those insignificant opportunities don’t create much optimism. Meanwhile, I’ll continue to enjoy IHG redemptions from the low- to high-end, but probably not the highest.
How are you feeling about the recent IHG One Rewards devaluation?
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Pains me to say this as someone who used to be a huge IHG booster (I still have the $49 IHG Select card!) but yeah Benjy is spot on here. IHG kind of used to be like Marriott-lite where prices were sort of dynamic but still tethered to an underlying category. So it used to be possible to get between .6 and .7 cpp or even up into .8 cpp before accounting for 4th night free at nicer properties on higher demand dates. Aside from a very small selection of properties, it seems like IHG is routinely pricing just about every property at about a half cent per point and any meaningful internal categorization of properties is just gone. Their points aren’t useless or anything, but it’s meaningfully harder now than at the beginning of this year to get outsized value from IHG.
Thanks for sharing your perspective, Raylan. You nailed it in that last sentence.
I must be blunt and say your analysis is flawed on a variety of levels:
1) You are saying this a devaluation but this is a new property
2)You use one data point and say this is system wide but that is demonstrably false
3)You compare a non-refundable introductory rate to points which are fully refundable
4)You ignore taxes and other fees which significantly raise the price
5)Your value of IHG points at 0.58 cpp is low
I looked at this property for May 14 of next year. Points are 178K, which is $890 when you buy them on sale, which is what smart IHG members do. I have never paid a resort fee with a points stay but I do realize that could be a YMMV. So to be very generous towards your analysis, I will say the points stay is a total of $980 versus $1156 for a non-refundable stay. However, as I said, the proper analysis is for a comparison to a refundable stay, which is $1485, which is a very significant savings. Even taking into account a resort that someone may or may not pay with a points stay, we get ($1395/178,000)= 0.78 cents per point. That is a drastically higher number than your 0.58 cpp that you claim.
And as I said, your picking one night at one location is an extremely flawed argument. For example, I looked at the IC in New Orleans for Fat Tuesday and Ash Wednesday of next year. It is 62K Points a night versus $470. That is 0.76 cpp.
And of course, using a ANC and topping it off, booking 4 nights for the price of 3 with points and legacy people like me that get 10% for holding the Select card increases the value proposition of points.
I have posted this response at Flyertalk, please publish it. Thank you.
https://www.flyertalk.com/forum/intercontinental-hotels-ihg-one-rewards-intercontinental-ambassador/2165703-did-ihg-just-devalue-its-points-today-8.html#post36560051
Mike,
I feel I addressed your concerns in the article, but regardless, this piece is primarily about how the IHG devaluation has become more real in my situation and maybe for some others. Perhaps that isn’t the case for you. Different strokes for different folks!
I use the IHG Premier card only at IHG properties and get 26X which is worth it for me since I frequently stay at Indigo, Kimpton, and Intercontinentals. $1,000 = 26,000 points = $130. Then I use them for redemptions in combination with the 6 IHG cards I have with P2.
I use the points to redeem nights costing over 40,000 points.
I will book reward nights using my certificates and then pay to upgrade to a Club level room using my IHG Premier card and get 26X for the additional cost.
Even worse, I’ve purchased IHG points for “half-price.” Yet, every time I check it still is better to pay the hotel rate since the cost of the points required is much higher than paying the room rate.
Please give us some examples. It has been demonstrated over and over again that there are plenty of great uses of points purchased at half price.
Thanks.
A couple of observations.
1. IHG has for a few years now by and large pegged redemption rates to the value of the underlying room. Has that changed? Or has the underlying value of the Regent Santa Monica changed, hence the point cost? Such means that IHG might only be helpful for the fourth night free, the occasional 15% off points value sale or in high lodging tax jurisdictions where the point cost tends to be governed by the pre-tax value of the room.
2. I have to wonder why you became a 2 Diamond family. If most of your travel is together, elite is covered for the family. I recently had a convo with a friend who was about to gift his wife Hilton Diamond, which he has. If she is traveling at all, it is generally with him or her mom. He eventually agreed that the gifted status would be more helpful to the MIL.
jfhscott,
I won’t give you the long version, but we were in a “yes, and” situation where we weren’t giving up anything major for us both going after Diamond. And in addition to family travel, we do regularly travel solo. Thanks for reading!
The Chase IHG Premier Business card yields 5X on office supply spend.
Still useless. Put that on an ink cash and then cash it out. Pay for the IHG property with the cash. Makes zero sense to put any spend on the IHG cards in any category.
Given that you get 26 points per dollar when you use an IHG card at 0.7 cpp that comes 18.2% versus the mere 5% on the Ink.
Plus you get status for your booking which will include a welcome amenity and the potential for upgrades and late check out. We have frequently gotten both. Plus we find you generally get better treatment aside from specified benefits.