Please note: This is a demonstration case study designed to show how our calculator works. It does not reflect real-time award space or real user data.
Hotel redemptions offer a unique advantage: when you book a room using points, some major hotel chains (such as Hilton and Hyatt) waive mandatory resort or destination fees on full-point award stays. Please note that Marriott still charges resort fees on point redemptions. This can significantly boost the value of your points if you stay at brands that waive them.
You find a luxury resort with a base room rate of $300 per night, plus a $50 daily resort fee, making the total cash price $350 per night. The same room can be booked for 25,000 points per night, and because it's an award stay, the resort fee and taxes are waived ($0).
We use the standard Cents Per Point (CPP) formula:
CPP = ((Cash Price - Taxes and Fees) / Points Required) × 100
Applying our numbers: CPP = (($350.00 - $0.00) / 25,000) × 100 CPP = ($350.00 / 25,000) × 100 CPP = 1.40 cents per point
By using points, you effectively get 1.40 cents per point and avoid paying out-of-pocket for annoying resort fees. For many hotel loyalty programs, getting over 1 cent per point is a solid redemption.
Try adjusting the numbers yourself: Check this example in our Points vs Cash Calculator.