How much is Starwood reimbursing a hotel for a Cash & Points redemption?

Updated: October 27, 2018

Published: September 16, 2013

While we can’t draw conclusions about other properties based on this, I do find it rather interesting. When pulling up Cash & Points availability on the St. Regis Houston’s website, here are what the rate details say:

St. Regis Houston

Now I assume the website isn’t supposed to display that information since it’s intended for internal reimbursement, but it sure is interesting to know that Starwood is reimbursing the hotel all of $21.19 for 6,000 Starpoints. Now if only we could buy points at that rate!

This also suggests that hotels are compensated a consistent amount for Cash & Points bookings, regardless of how full they are. This isn’t surprising given that Cash & Points availability is capacity controlled and at the hotel’s discretion. Meanwhile for free night bookings the compensation from Starwood to the hotel is variable based on whether the hotel is close to occupancy or not.

(Tip of the hat to Chris)

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ffi Guest

September 16, 2013, 4:59 pm

The way I look at it is slightly different. I can pay 12000 points vs pay 6000 points +110$; so I am "buying" 6000 points for about 110$ cash So an SPG point is about 1.9c with this and an AA mile becomes 1.5c. Better than buying AA, US etc to top up accounts.

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Jeremy Guest

September 16, 2013, 12:19 pm

@Gary, does that reimbursement for award stays (when occupancy is greater than 90%) mean that SPG reimburses the property for the average daily rate for the night of the award or is the ADR based on a longer period such as a year? Also any idea as to what they reimburse if occupancy is below that 90% threshold? I'd assume some small amount given as stated above whatever it is is likely greater than the marginal cost.

Ivan Y Diamond

September 16, 2013, 11:46 am

@ DJ - you are welcome! For Aloft the cheapest rate is "AAA Hot Rate", for Sheraton Galleria - "AAA Local Package". Right now they are kind of high for the upcoming weekend but usually get cheaper a few days closer to the stay.

Donnie Law Guest

September 16, 2013, 10:39 am

That's really interesting that you were able to see that. I'm surprised how low the number is.

nssfly Guest

September 16, 2013, 10:32 am

When staying at a SPG Category 5 hotel in Europe on a C&P rate (6,000 points + $110 USD), the hotel accidentally included the SPG reimbursement slip in my folio. I recall that the reimbursement from Starwood amounted to approximately 16 EURO or about $21.4 USD with today's rate. This is consistent with what is accidentally disclosed by the St Regis Houston and what is described in this post.

How much is Starwood reimbursing a hotel for a Cash & Points redemption?

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