When Paying More Than Double For Your Hotel Room Is A Good Thing

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When Paying More Than Double For Your Hotel Room Is A Good Thing

Did he say double? This must be some clickbait ‘ish, there is no way paying more than double for a hotel stay is a good thing. Did this train of thought just run through your mind?  I don’t blame you, it is a big pill to swallow.  But with ninja stacking skills our Facebook Group moderator, Kevin S., was able to do just that.  Let me share his break down with you.

Crunching the Numbers

Here is what Kevin posted in our Facebook Group (you should join if you are not in there already 😉).

Remember to consider the “stack”!
I have an upcoming stay at the Park Hyatt Beaver Creek. I had a reservation at a special rate for $159 that doesn’t earn points or stay credit, but I cancelled it in favor for paying $369 through American Express Fine Hotels & Resorts. I’m crazy, right? Hear me out. Let’s assume Hyatt points and MR are both worth 1.5cpp:
Net cost, ignoring tax, on the cheap rate:
  • $159 x 2 = $318
  • Earn: 318 @ 4x on WOH card: 1272 WOH, valued at $19.
  • Net cost $299.
Net cost, ignoring tax, on the $369:
  • $369 x 2 = $738
  • Less: Amex Offer for $150 back
  • Less: Amex Platinum renewal $200 credit towards Amex Travel
  • Less: $100 property credit from FHR booking.
  • Earn: 738 @ 5x on Amex Plat: 3690 Membership Rewards, valued at $55
  • Earn: 738 @ 5x Hyatt base points: 3690 World of Hyatt points (WOH), valued at $55
  • Earn: Bonus Journeys 738 @ 15x Hyatt bonus points: 11,070 WOH, valued at $166
  • Earn: Globalist bonus 738 @ 1.5x Hyatt bonus points: 1107 WOH, valued at $16.
  • Net cost: -$4 for two nights. THAT’S RIGHT, I’m staying for “free”
PHEW. CRAZY right? Morale of the story? Don’t dismiss a rate just because it looks insanely high.
A few additional notes:
  • The Amex FHR rate would also include breakfast, room upgrade if available, and as a Globalist, free valet parking.
  • You could argue that the $100 property credit isn’t worth $100 if you won’t actually be spending any money at all on property. That’s fair, but since I’m bringing a dog, that will go 100% to the pet fee!
  • Plus, I’ll earn 2 elite credits, one towards 2020 and one towards 2021. I value those at around $30, but I won’t include that in the valuation above.

Kevin also admitted to me he forgot to add in the American Airlines miles he will be earning on the stay, so it even gets a little better than what is listed above.

Final Thoughts

Talk about some epic stacking! Even if you look at just the cash outlay it is $388, after accounting for two of the credits, versus $318 for the cheaper stay.  That isn’t that much more coming out of your pocket up front, but you get a ton of miles and points because of it.

Remember to never judge a book by its cover. Discovering the best deals is a part of our miles and points D.N.A. and Kevin just knocked it out of the park! (Park for Park Hyatt…see what I did there 🤣?) Hopefully he has inspired you to do some serious stacking on your next trip.

A big thanks to Kevin S. for sharing this with us.
Mark Ostermann
Mark Ostermann is a father, husband and miles/points fanatic. He left the corporate world after starting a family in order to be a stay at home dad. Mark is constantly looking at ways to save money and stay within budget while also taking awesome vacations with his family. When he isn't caring for his family or taking a weekend trip, Mark is working towards his goal of visiting every Major League Baseball ballpark.

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12 COMMENTS

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12 COMMENTS

  1. I must have missed the blog on the $200 travel credit! Does that show up within your card benefits or offers? I dont see it on mine but at the same time im not sure when my cards renew if im even within the eligibility window since my fees are waived.
    I for sure have paid more for hotel room (selecting different rates or different room type) in the past to trigger offers which made the end price cheaper, although not nearly as good as this stack.

    • It was sent out to targeted cardholders depending on their renewal date.

      Platinum Card Members who renew their Card between April 1, 2020 and December 31, 2020

  2. Thanks, Mark. Well stated! I try to explain this stuff to friends and family, but they glaze over. My ‘inner accountant’ loves it!

  3. Pretty cool but is he sure that he will get the WoH associated bonuses booking through FHR? Asking specifically about the 2 elite night credit and the WoH points earnings.

    • You are supposed to. Sometimes it doesn’t track and you have to ask Hyatt but they always have credited it in the past.

  4. I would argue that you paid for the amex $200 travel credit. It would seem you should also include vase points, journey and globalist in with the in expensive rate as well.

    But I think you point still stands.

    • It was a corporate rate so the points wouldn’t be earned on the other stay, just the credit card points.

      The $200 Amex Travel Credit was an extra credit they added this year because of the pandemic so it is money on top of what was expected when signing up for the card. So we didn’t look as it as it was paid for like you could say for the airline incidental credit etc.

  5. So, on point #2, the Amex offer (on Schwab Platinum) was for $150, but on $800 spend. But the net cost is $738, right?

    So where is the $62 at? Or have I missed some data?

    • Taxes and fees will push it above the $800 – he didn’t include them in either calculation to make it a little easier on the calculations.

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