World Of Hyatt’s 2024 Hotel Category Changes

World Of Hyatt’s 2024 Hotel Category Changes

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A few weeks ago, World of Hyatt revealed hotel category adjustments for 2024, impacting which hotels are in which categories (and in turn impacting how many points are required for free night redemptions). This is something that Hyatt does annually. I wanted to post a reminder of this, as the changes will be kicking in a few days from now, so you’ll want to make any bookings at old pricing now.

There’s good news and bad news. The good news is that the total number of properties changing categories isn’t as high as in 2022 and 2023. The bad news is that the percentage of properties increasing in category (rather than decreasing) is higher than in past years.

183 Hyatt hotels changing categories on March 26

World of Hyatt’s 2024 hotel category changes will be kicking in for bookings made as of 8AM CDT on Tuesday, March 26, 2024.

As of that date, 183 hotels will be changing categories, with 137 hotels shifting to a higher category and 46 hotels shifting to a lower category. You can find a full list of hotels changing categories here.

Alila Marea Encinitas will become a Category 7 World of Hyatt property

In terms of booking logistics:

  • All reservations made prior to March 26 will follow the current award chart, even if you stay on a subsequent date
  • Members who have stays booked at hotels that go down a category will receive an automatic one-time refund of the points difference; these points will be returned starting March 26
  • Any adjustments made to bookings after the changes go into effect will follow the new pricing

As a reminder, below is the standard World of Hyatt award chart.

World of Hyatt Category
Off-Peak
Standard
Peak
Category 1
3,500
5,000
6,500
Category 2
6,500
8,000
9,500
Category 3
9,000
12,000
15,000
Category 4
12,000
15,000
18,000
Category 5
17,000
20,000
23,000
Category 6
21,000
25,000
29,000
Category 7
25,000
30,000
35,000
Category 8
35,000
40,000
45,000
World of Hyatt New Peak & Off-Peak Pricing

Some notable Hyatts changing categories

As mentioned above, we’re seeing 183 hotels shifting categories, with 137 hotels shifting to a higher category and 46 hotels shifting to a lower category. That’s rough, as 75% of hotels changing category are getting more expensive, while only 25% are getting less expensive.

On the plus side, at least the total volume of hotels changing categories isn’t as extreme as in the past couple of years. While you’ll want to take a look at the full list of properties for yourself, let me share what I consider to be some notable category changes.

Here are some of the World of Hyatt category increases that stand out most to me:

  • Alila Villas Uluwatu goes from Category 7 to Category 8
  • Hyatt Centric Park City goes from Category 7 to Category 8
  • Alila Jabal Akhdar goes from Category 6 to Category 7
  • Andaz Costa Rica Peninsula Papagayo goes from Category 6 to Category 7
  • Andaz Singapore goes from Category 5 to Category 6
  • Grand Hyatt Kuwait goes from Category 5 to Category 6
  • Park Hyatt Auckland goes from Category 5 to Category 6
  • Park Hyatt Istanbul goes from Category 5 to Category 6
  • Park Hyatt Washington goes from Category 5 to Category 6
  • Park Hyatt Zanzibar goes from Category 5 to Category 6
  • The Grayson Hotel New York goes from Category 5 to Category 6
  • Andaz Bali goes from Category 4 to Category 5
  • Hyatt Centric Waikiki Beach goes from Category 4 to Category 5
  • Hyatt Regency Dusseldorf goes from Category 4 to Category 5
  • Thompson Chicago goes from Category 4 to Category 5
  • Park Hyatt Siem Reap goes from Category 3 to Category 4
  • Hyatt Regency Belgrade goes from Category 1 to Category 2

Here are some of the World of Hyatt category decreases that stand out most to me:

  • Alila Marea Beach Resort Encinitas goes from Category 8 to Category 7
  • Magma Resort Santorini goes from Category 7 to Category 6
  • Grand Hyatt Taipei goes from Category 4 to Category 3
  • Tommie Hollywood goes from Category 4 to Category 3
  • Hyatt Regency Cape Town goes from Category 2 to Category 1
The Park Hyatt Auckland will become a Category 6 World of Hyatt property

The economics of World of Hyatt awards

If you want to make sense of these hotel category changes, it’s worth understanding how the economics of hotel loyalty programs work. Keep in mind that most Hyatt hotels are independently owned, so Hyatt’s loyalty program has to compensate individual hotels for each redemption. As a general rule of thumb, here’s how it works:

  • When the hotel isn’t full, the loyalty program compensates the hotel at some reimbursement rate that’s slightly above the marginal cost of servicing a room, etc.
  • When the hotel is full (think 90-95%+ occupancy), the loyalty program compensates the hotel close to the average daily rate, in recognition of the fact that the room may have otherwise been sold

For example, if a hotel has high rates but low occupancy, it might be in a disproportionately low category. Meanwhile if a hotel has lower rates but consistently high occupancy, it might be in a disproportionately high category. It’s all about World of Hyatt’s redemption costs.

In recent years, we’ve seen a huge increase in the average cash rates at hotels, especially for luxury, leisure oriented properties. So it’s not surprising to see points redemption rates increase as well, reflecting that trend.

Alila Jabal Akhdar will become a Category 7 World of Hyatt property

Bottom line

World of Hyatt has revealed its hotel category changes for 2024. As of March 26, 2024, we’re going to see 183 properties shift categories, with 75% of those properties going up in cost, and 25% going down in town.

The annual category changes we see from World of Hyatt is ultimately the equivalent of a soft devaluation. Then again, the cash cost of many of these properties are increasing as well, so it’s really only a devaluation compared to previous points redemption rates, rather than compared to cash rates. Furthermore, at least World of Hyatt publishes award charts — other hotel programs just have dynamic pricing, so constantly increase redemption rates without us even knowing.

What do you make of these World of Hyatt changes?

Conversations (35)
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  1. Christian Guest

    How much longer can they get away with not allowing the Cat. 1-4 certs to be topped off with points to book a higher level like IHG and Marriott? If they don't make this move pretty soon, I think they will loose spend on the CC from some people. Putting an extra $15k of spend on the card at a Hyatt property to get the extra free night MIGHT make sense but for those with less spend at Hyatt it certainly is something that no longer is a "no brainer" IMHO.

  2. iamhere Guest

    Next time you complain about Marriott, I hope you consider that in this regard they are all the same.....

  3. Trey Guest

    When does this end?? ..when Hyatt Place Tulsa becomes a Cat-7? ..or will they one day have a Category 16??

  4. Dulles Doldrums Guest

    Ah yes, that time of year when Hyatt makes Category 4 certificates even more useless. Thompson Chicago was one bright spot in the certificate redemption space - was only a matter of time before they took that away.

    As a longtime globalist, I'm also growing tired of Hyatt not having a Westin brand equivalent in their portfolio catering to business travelers. The Regency footprint can be sparse and are very hit and miss, while...

    Ah yes, that time of year when Hyatt makes Category 4 certificates even more useless. Thompson Chicago was one bright spot in the certificate redemption space - was only a matter of time before they took that away.

    As a longtime globalist, I'm also growing tired of Hyatt not having a Westin brand equivalent in their portfolio catering to business travelers. The Regency footprint can be sparse and are very hit and miss, while Centrics are even more sparse and range between a 4.5 star property and a glorified Hyatt Place.

  5. Andrew Diamond

    "Hyatt Centric Waikiki Beach" now category 5, still doesn't know how to open a restaurant and serve breakfast, gives Globalists 1,000 points because *that will cover it*. That property should be ejected from the program entirely.

    1. BaconSF Guest

      Yeah, now it’ll be the same cat as the HR which has free breakfast and a lounge for globalists

  6. Aaron Karsh Guest

    Ben, by past experience, do you expect a refund for pre-booked Points and Cash stays? We’ve got four nights at the Hyatt House Kanazawa, for which we paid 6750 points and 7865 yen per night. It’s now moving from a Cat 3 to a Cat 2. Can we expect a refund on points, do you think? That rate structure is not available for our dates currently.

    1. Eric Guest

      Yeah you will get points refund. Btw I am currently staying at Hyatt Centric Kanazawa, I got to say this is so much better than the hyatt house next door. For the price you are paying, I would assume its a lower season. Have you check the price of Hyatt centric? I got 10000 yen per night here, which is crazily cheap.

  7. Esquiar Guest

    Hyatt Centric Park City not worth Cat 8. The staff were barely trained, and the Canyons base area where it’s located is pretty mediocre in terms of food options. The on property food was surprisingly bad

  8. NK3 Gold

    I think "good news" of a lower number of properties changing is tied to the (very) bad news of SLH leaving. If all the SLH properties were sticking around, I bet there would be a lot more category adjustments.

  9. Conan Guest

    I'm really devastated Alila Uluwatu is going up in the amount of points, it's my favourite Hyatt redemption being based in Sydney.

  10. Antwerp Guest

    Park Hyatt in DC increase is absurd. It's becoming a dump these days. Only the F&B is decent. Rest of the hotel is basically on par with a Regency.

    1. Santos Guest

      And Regency Dulles is going up! Talk about a dump.

    2. destruya Member

      The only thing the HR Dulles was good for is a mattress run with amenities. The only upper-end DC property not getting bumped up is the Thompson, surprisingly.

  11. Matt Guest

    I'm amused that Alila Marea is still a thing. It was way over hyped in it's early days and then disappeared from all blogs when the category climbed. I stayed there several nights a few years ago and if I hadn't been Globalist it wouldn't have been worth it. Our 'upgraded' room overlooked the beach parking lot. It was a hike to the beach. The pool was tiny and crowded. And while Encinitas is a...

    I'm amused that Alila Marea is still a thing. It was way over hyped in it's early days and then disappeared from all blogs when the category climbed. I stayed there several nights a few years ago and if I hadn't been Globalist it wouldn't have been worth it. Our 'upgraded' room overlooked the beach parking lot. It was a hike to the beach. The pool was tiny and crowded. And while Encinitas is a fun little town you're far from San Diego. It's so good to see it mentioned again, hopefully more travels will stay here so the places I want to go are less crowded!

  12. Not yet pesos Guest

    What Hyatt House Augusta a "5?" The rooms often go for $120 a night.

    1. Santos Guest

      Yeah, some of the Hyatt House/Hyatt Place increases make cash stays a no-brainer moving forward.

  13. Polestar New Member

    Feels like the pool of properties that one can use a free night award at (categories 1 - 4) is getting smaller and smaller each year as more properties are category 5 or higher? This makes the free night award on the Hyatt credit card that much harder to enjoy.

    1. Rico Gold

      Yep. This year's disappointment for me is the Tribune in Rome. It's was a nice hotel to burn a couple free night certs and add on another night or two for 15K points. Not anymore.

    2. BaconSF Guest

      I will not spend $15k this year for the cat4 free night award. Practically worthless like the Marriott free night cert

  14. Robert D Guest

    I’m very happy that HR Vancouver is staying a Cat 4, cash rates can be quite high there at times. And it’s good that San Francisco will finally have a Cat 4 property (Centric) except I have no desire to stay in Fisherman’s Wharf. Too bad none of the other SF properties are moving down from Cat 5, cash rates in SF have been quite low post-pandemic, so it’s not worth burning points at the SF properties.

  15. Larry D Guest

    I'm sure there will be conversation that the beloved Andaz Papgayo in Costa Rica was once a Cat 4 and will soon be a Cat 7. I'm sad that the Park City Hyatt Centric, that was a Cat 4 will soon be a Cat 8. That's a big one for me, because I am using my Cat 7 Certificate there next month. I guess I won't have that option next year. Love that place !!!

  16. Portlanjuanero Member

    It's very reflective of travel trends how almost every decrease is in US, Japan, and greater China. Most stunning line to me is the Alila Marea: fully expected the PH Aviara to move up to meet it at an 8, not the other way around.

    Will also say PHs Zanzibar and Istanbul particularly hurt going up to 6 when they were each a 4 two years ago

  17. Alex77W Guest

    I am still surprised seeing Park Hyatt Zanzibar and Thompson Madrid moving to Cat 6. Just a few years back I stayed at both properties to burn Cat 4 certificates...

    1. Bobo Guest

      Stayed at Thompson Madrid on a cat. 4 certificate last fall, booked before it moved to cat. 5. It's a beautiful place in a great city-center location so cat. 6 isn't surprising.

  18. Joe Guest

    The category 1-4 certificate should really become a 1-5 at this point considering “inflation”

    1. Greg Member

      Agree, or at least allow top-offs like IHG and Marriott

    2. Polestar New Member

      I agree. Seems like more and more of the properties are category 5 or higher these days.

    3. digital_notmad Diamond

      Agreed. Easily the most frustrating thing about the WoH program is their past few years of ruthlessly jacking up categories and award pricing without any meaningful olive branch of new ways to earn points. If anything, earning points is getting harder.

    4. Andrew Diamond

      I said the same thing about the c7 certificate. Hyatt’s response was to create a different c8 cert that you get after 150 nights. :(

      5 months for a single night cert, which then you can burn in Park City or Key West at the middest of hotels.

  19. Charles Guest

    The lack of any SLH properties is quite indicative of something pretty imminent.

    1. Dom Guest

      It was announced earlier this month that the partnership between SLH and Hyatt is ending with SLH now partnering with Hilton:

      https://stories.hilton.com/releases/hilton-partners-with-small-luxury-hotels-of-the-world-to-dramatically-expand-global-luxury-portfolio

  20. Powerball Winner Guest

    Several Hyatt all inclusives increasing by 25% (40K to 50K points).

    1. Mary Guest

      Thompson Chicago was one of my favorites when it opened but it’s been in need of a refresh for ages. Did I perhaps miss a reno? Otherwise it’s absurd to be increasing.

  21. Evan Guest

    Andaz Costa Rica Peninsula Papagayo moving from Cat 6 to Cat 7 is notable. A few years ago, this was one of the highest value redemptions for a Category 1-4 certificate. Still a great property, but Cat 7 is too rich.

Featured Comments Most helpful comments ( as chosen by the OMAAT community ).

The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

Joe Guest

The category 1-4 certificate should really become a 1-5 at this point considering “inflation”

9
Antwerp Guest

Park Hyatt in DC increase is absurd. It's becoming a dump these days. Only the F&B is decent. Rest of the hotel is basically on par with a Regency.

3
Polestar New Member

Feels like the pool of properties that one can use a free night award at (categories 1 - 4) is getting smaller and smaller each year as more properties are category 5 or higher? This makes the free night award on the Hyatt credit card that much harder to enjoy.

3
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