Maximizing Hyatt Category 1 Hotels

Hyatt’s Gold Passport Loyalty program organizes their hotels into 7 categories.  The higher the category, the more points required for a free night redemption.  Hyatt hotels in category 1 require just 5,000 Hyatt points for a free night redemption.  Hyatt Hotels in category 7 require 30,000 points for a free night redemption.

Category 1 hotels are important to Gold Passport members for a few reasons.  Members that are close to the required number of stays for a higher status level may be interested in finding the cheapest priced category 1 hotels so they can pay for a few extra hotel nights to retain their current Hyatt status for next year.  Other members may be interested in spending their Hyatt points towards hotels in Category 1 that offer the best value for their points.

I created a list of the current Hyatt Category 1 hotels in the US and added the current hotel prices for a weekday and a weekend stay.  The list uses January 3, 2017 as the date for a weekday stay and January 14, 2017 as the date for a weekend stay.  I then took the one night standard rate cost and divided it by the required point redemption for a free night (5,000 points) to determine a hypothetical point redemption value.  The higher the point redemption value, the more value you get for an award redemption at that hotel.

It’s important to be aware that posted hotel prices are subject to change and these values only represent one point in time.  However, I think they are a good general barometer for the hotel’s typical cost.  They are also a good resource for anyone just looking to find the closest Category 1 Hyatt hotel.

Point Value

What exactly is the value of a Hyatt point?  Valuing a loyalty points currency is highly subjective.  However, it’s important to make some type of estimate for the base value of a Hyatt point in order to determine whether a given hotel redemption represents better value compared to another hotel nearby.

Another argument is that all loyalty points decline in value over time (since airlines and hotels regularly devalue their points) so your better off just spending loyalty points as fast as possible towards the best options currently available because the loyalty points will always lose value over time.  Both arguments have merit.

My philosophy is that I try to spend the points as quickly as I can but I also try to maximize the point redemptions as much as possible.  So I do believe there is merit estimating a base value for a Hyatt point even if the value is only a general guide.

Point Value Sources

There are a few places to find potential values for Hyatt points:

• I can purchase points directly from Hyatt at prices ranging from $24 for 1,000 points ($.024 per point) to $1,320 for 55,000 points ($.024 per point).
• The Points Guy retains a monthly list of hypothetical point values.  For November 2016, Hyatt points are valued at $.018.
• The average point redemption value from my list of category 1 Hyatt hotels in the US (based on the posted standard rate cost) for an average weekend is $.022.

So in very general terms you could hypothetically say the value of a Hyatt point ranges anywhere from $.018 to $.024.  If you find a redemption opportunity greater than $.024 per point, your getting great value for your points and if you redeem your points for less than $.018 per point, you might not be getting a great value for your redemption.  But always remember your points are worth $0 if you never redeem them at all so take those values with a grain of salt.  Any redemption is better than no redemption.

Category 1 Options

The vast majority of Hyatt Category 1 hotels represent limited service Hyatt Place and Hyatt House properties.  However, there are a few instances of full service Hyatt Regency properties listed as Category 1 hotels.  If I have a choice between staying at a Hyatt Regency or a Hyatt Place / House, I always choose a Hyatt Regency.

I sorted the following table to show Hyatt Regency Category 1 hotels with the highest point redemption values for a weekend night in January 2017:

If you happen to be near one of the Hyatt Regency’s on the list, your best value point redemption would be the Hyatt Regency in Green Bay and the Hyatt Regency in Naperville.  If I needed a few more nights to make the next status tier at Hyatt, the cheapest options would be the Hyatt Regency in Albuquerque or North Dallas.

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Arizona

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Colorado

Florida

Georgia

Idaho

Illinois

Illinois

Kansas

Kentucky

Louisiana

Maryland

Michigan

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North Carolina

Hyatt Category 1 North Dakota

Hyatt Category 1 Ohio

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Utah

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Wisconsin

Note: the following Category 1 properties were excluded from the list because they either didn’t have available occupancy or they will not open until later in 2017.