This went from something that I would have never considered, to something that potentially represents a good deal.
World of Hyatt has just launched a promotion offering 15-25% off points redemptions this summer, so in this post I wanted to revisit this redemption, because it potentially represents a spectacular value. First I wanted to talk about this redemption opportunity in general, and at the end I’ll look at how much more valuable this has become with the current promotion.
Hyatt Dining & Spa Experience Awards
Generally, the best way to redeem World of Hyatt points is towards free night awards. However, you can also redeem World of Hyatt points towards the cost of dining and spa experiences.
Back in the day, this used to be an awful value, though changes were made to this in January 2020, which make this redemption more worthwhile than ever before. Is this how you should redeem your points, though?
New Hyatt Dining & Spa award chart
Here’s a chart showing the various redemption opportunities available with these awards:
|Points Required||U.S. Dollar Credit||Value Per Point|
As you can see, you can redeem anywhere from 1,000 points for a $10 credit, to 65,000 points for a $1,000 credit. The value per point ranges anywhere from 1.0 cents per point, to 1.54 cents per point.
1.54 cents per World of Hyatt point sounds like a solid deal, as personally I value Hyatt points at 1.5 cents each. Is there a catch, though?
What can Hyatt Dining & Spa awards be used towards?
The exact redemptions that are allowed vary by hotel, but generally you can expect that these awards can be used for food and beverage purchases, spa and salon services, and spa and salon retail items.
On top of that, when charged to a member’s guest room, the following charges may be eligible:
laundry, dry cleaning, telephone charges, pay-per-view movies, parking, gift/retail shop, service charges, taxes (not including room taxes) and gratuities
Meanwhile the following charges are expressly prohibited from being eligible:
room rates, room taxes, alcoholic beverages (in certain jurisdictions), catering or banquet charges, and casino charges
What hotels are eligible for Hyatt Dining & Spa awards?
Not all Hyatt hotels participate in this program. Miraval, Destination, and Hyatt Residence Club properties are not eligible.
Furthermore, redemption of these certificates is limited to registered guests at Hyatt Zilara, Hyatt Ziva, Hyatt Place, and Hyatt House hotels and resorts.
To be positive, you can search participating properties at this page.
How do you actually redeem a Hyatt Dining & Spa award?
You don’t need to redeem for these certificates in advance, but rather the World of Hyatt member should just inform the Hyatt employee at the eligible outlet that they’d like to redeem points towards their purchase at the outset. You’ll need to have your membership information, and should then be asked how many points you want to redeem.
If you’re a registered guest at a hotel then you can apply one of these at check-out towards multiple purchases over the course of a stay. If you’re not a registered guest then you’ll have to settle your folio at the particular outlet you’re at.
Other Hyatt Dining & Spa award basics
There are a few other things to potentially be aware of:
- You don’t earn World of Hyatt points for any purchase for which you’re redeeming a Dining & Spa award, including the amount in excess of what you’re redeeming for; this is puzzling, but that’s what the terms state — “any charges for which a Dining, Spa and More Award is redeemed (including charges in excess of the award amount) are ineligible to earn points in the program”
- You can redeem at most one award per transaction, and the transaction amount can be above or below the award amount; if it’s above, you can pay the difference in cash, while if it’s below, you don’t get any refund
- The member has to be present to redeem this, so you can’t use this as a gift for someone you’re not traveling with
Are Hyatt’s Dining & Spa awards a good deal?
On the surface, being able to redeem World of Hyatt points for up to ~1.54 cents towards the cost of a purchase is a solid deal. Is it exceptional? No. But as a way of essentially “cashing out” your points to offset cash costs I think it’s very good.
I do think it’s important to create a more realistic valuation of these redemptions, though. When you redeem these awards you’re forgoing the opportunity to earn points on these purchases:
- World of Hyatt members ordinarily earn 5x points per dollar spent
- As a Globalist member I earn an additional 1.5 points per dollar spent
- For paying with the World Of Hyatt Credit Card I earn 4x points per dollar spent
As a Globalist member I earn 10.5x points per dollar spent, which I value at a return of ~16% (1.5 cents per point). That’s an opportunity cost that’s worth factoring in, so in reality, I’d adjust the maximum value from 1.54 cents to ~1.3 cents.
Personally, this isn’t how I’d redeem my World of Hyatt points, though I do think many people could find this to be worthwhile for a splurge:
- If you’re on a special trip and want to have some awesome spa treatments or a really extravagant meal that you wouldn’t otherwise pay for in cash, this could be a great way to do so
- If you’re a business traveler who earns more World of Hyatt points than you know what to do with, this could be a great way to enhance stays
Limited time: get more value with Dining & Spa awards
Right now is probably simultaneously the best and worst time for this redemption option. Between July 8 and October 8, World of Hyatt is offering:
- 15% back on points redemptions for all members
- 25% back on points redemptions for those with a co-branded Hyatt Card
In other words, if you had a Hyatt Card and redeemed 65,000 World of Hyatt points, you’d get 16,250 points back. That means you’d pay a total of 48,750 World of Hyatt points for a dining & spa voucher worth $1,000. That means you’re getting ~2.05 cents per World of Hyatt points, which is awesome for essentially “cashing out” towards experiences at a Hyatt property.
Now, the huge catch of course is that this is happening during the current pandemic:
- Many people aren’t traveling at all
- Even if you are staying at a Hyatt, many spas and restaurants are closed, so actually finding experiences to spend money on might not be easy
- If you are going to spend money on experiences, you may not be able to max this out to the $1,000 amount that gets you the best value per point
At an absolute minimum it’s worth being aware of this promotion.
Hyatt’s improved redemption rates on dining and spa experiences has the potential to represent a solid deal. Getting 1.54 cents per Hyatt point towards the cost of a purchase is a good redemption, though do factor in the points you’re forgoing, which brings down the redemption value a bit.
While I wouldn’t say this is the best way to redeem Hyatt points, this could be worth it if you want to splurge on some experiences you’d rather just not pay for in cash.
With the temporary promotion being offered for up to 25% back on points redemption, this is an even better deal, and you can get over two cents of value per World of Hyatt point. The catch is that in this era, dining and spa experiences aren’t as valuable as they used to be.
What do you make of Hyatt’s Dining & Spa awards? Could you see yourself redeeming points for them?