SPG Annual Category Shift: Yearn to Burn

The Laguna Resort and Spa, Nusa Dua, Bali, Indonesia

Dec 2003, SPG Category 2, free weekend night =3,000 Starpoints

March 2008, SPG Category 4, free weekend night =10,000 Starpoints



[Note from Ric Garrido Mar 3, 2008:
I apparently misread the "SPG Hotel Category Changes for 2008" chart at the time I wrote this post. I do not see The Pulitzer, Amsterdam showing a Hotel Category Change in March 2008. The Pulitzer remaining at Category 5 made much of my blog text moot concerning that hotel going from Category 4 to Category 6 in just over a year. I have edited the blog post to delete the portion on The Pulitzer. I also corrected some elementary math errors: Increasing from 100 to 250 is a 150% increase, not 250%.]

Gary Leff's post, February 25, 2008 on View from the Wing about the SPG annual category shift got me to thinking about my reaction to the coming changes. I understand the rationale for SPG increasing the categories for high demand hotels. Yet, I feel the pain of devalued points.

I have decided to look at it initially from my personal travel perspective.

Maybe later, I'll tackle a real analysis of the shifts if I can locate charts showing the SPG categories from 2004 and 2006 to help me track the changes. Blondebomber of FlyerTalk has active links to his SPG Hotel Category spreadsheet on the internet. The spreadsheet tracks the SPG hotel category changes from 2005 to the current March 4, 2008 changes.

Hotel Shifts I notice from past stay award rates for a single free night:

Sheraton Noosa, Noosa Heads, Queensland, Australia,
July 2003
Category 3
7,000 points

March 2008
Category 5
12,000-16,000 points

Four Points Darling Harbour, Sydney, Australia
July 2003
Category 2
3,000 points weekend; 4,000 points weekday

March 2008
Category 4
10,000 points

Westin Nusa Dua, Bali, Indonesia
December 2003
Category 1
2,000 points weekend; 3,000 points weekday

March 2008
Category 3
7,000 points

The Laguna Resort, Luxury Collection, Nusa Dua, Bali, Indonesia

December 2003

Category 2

3,000 points weekend; 4,000 points weekday

March 2008

Category 4

10,000 points

Royal Orchid Sheraton, Bangkok, Thailand
March 2004
Category 1
2,000 points weekend; 3,000 points weekday

March 2008
Category 3
7,000 points

Westin Atlanta Airport
June 2007
Category 2
3,000 points weekend; 4,000 points weekday

March 2008
Category 3
7,000 points

Sheraton Newark Airport
June 2007
Category 2
3,000 points weekend; 4,000 points weekday

March 2008
Category 3
7,000 points


I have made a very rough estimate of the category changes at hotels I've visited.

I've probably redeemed 150,000 to 200,000 Starpoints for free nights at some of the hotels listed here and other places and locations I've stayed over the past five years.

I estimate it would now take about 260,000 points for the same number of nights at hotels where I redeemed points for stays for about 100,000 points.

Next month, 100,000 Starpoints might buy 10 nights at a selection of hotels where I redeemed 100,000 points for 25+ nights.

Hotel room rates in most places have not risen anywhere near 150% in the past five years. Starwood point inflation has been devastatingly high on the free night redemption side for many travelers.

In Starwood's favor, the widespread expansion of available Cash & Points rates in 2007 for hotels in all SPG categories from 1-6 has proved to be a high value use of Starpoints at many hotel properties.

$60 and 4,000 Starpoints for a Category 4 hotel award night can be a great alternative to 10,000 Starpoints or a $250+/night paid room rate. Paying $60 cash is a much higher value than spending 6,000 Starpoints.

$150 and 8,000 Starpoints for a Category 6 hotel night is often a better choice than 20,000 Starpoints or a paid room rate of $500/night.

I am glad I traveled when I did.

How much has your Starpoints earning power increased over the past five years?

My earning power hasn't increased significantly and nowhere near 150%.

Two options for this traveler: Stay fewer hotel nights or pay more money to increase the ratio of paid/award nights.

My economy will be the decider.

The Loyalty Triple Pointer: The Bali Hop

The Laguna Resort and Spa, Nusa Dua, Bali, Indonesia
Starwood Luxury Collection Hotel (12/2003)

March Madness Triple Pointer



Another Easter vacation break is coming up in March. When a spouse works in public schools in the USA, Easter week vacation is a given.

The combination of points and miles I currently have at my disposal had me looking at flights to Japan. I have transited through Tokyo more than a dozen times, however, I have never flown on a ticket allowing a free stopover. I am quite familiar with the Narita (NRT) airport.

Mexicana miles are my connection to Japan. Back in 2002, Kelley and I earned about 60,000 miles in our Mexicana Airlines accounts when the airline was a Star Alliance member. There was a 5th Anniversary of the Star Alliance promotion for 55,555 miles earned if a frequent flier flew 5 Star Alliance member airlines. I purchased 5 tickets from Lufthansa, United, Air Canada, British Midland, and Austrian Airlines. Each ticket consisted of four flight segments. For example: Lufthansa went Amsterdam-Frankfurt-Munich outbound and Munich-Frankfurt-Amsterdam on the return flights. We flew 20 flight segments and submitted one boarding pass from each ticket to four different airlines. We received the 55,555 mile bonus with Lufthansa Miles&More, Air Canada Aeroplan, ANA Mileage Plan, and Mexicana Frecuenta. Since 2002, I have added to the accounts through other activities and both Frecuenta accounts now have 100,000 miles.

Mexicana airline partner awards still include several of the Star Alliance airlines. A feature of Mexicana Frecuenta is the ability to purchase large amounts of miles. The price at $22/1,000 miles makes this a lower cost alternative than many other airlines. Japan Airlines is the newest airline partner of Mexicana. The low cost of miles and high value award tables seem to have prompted an awards table makeover for Mexicana Airline Partner tickets using miles.

As little as two years ago I could have traveled in First Class from the USA to nearly any country in the world for 100,000 Mexicana miles. Now I have the option of LOT Polish Business Class from New York to Warsaw for 80,000 miles; American Airlines USA–Europe for 90,000 miles, or the high value ticket routing of Tokyo-Sydney or Tokyo-London in First Class for 100,000 miles.

A Japan Airlines First Class award ticket using my Mexicana miles is what prompted me to look at the fares between California and Tokyo. And what I found prompted me to sign up for the American Airlines Platinum Challenge.

$753 all-in fare, Monterey – Tokyo, March travel, “W” booking class.

There is high value in one ticket bought and flown and American Airlines 50,000 mile Platinum status after the trip through February 2009.

Starwood Hotels Le Meridien Free Nights Promotion

This promotion is the biggest opportunity with Starwood Preferred Guest since 2003 when the Asia/Pacific Stay 5 earned a 50,000 points bonus. Another reason I was looking at a Japan Airlines award is the opportunity of a First Class Japan Airlines award to Bali, Indonesia. The interesting feature of Bali is the ability to hotel hop around the island while quickly qualifying for two promotions at low nightly rates.

The two Hyatt hotels, the Grand Hyatt Bali at Nusa Dua and the Bali Hyatt, and Starwood's Le Meridien Nirwana Golf and Spa Resort, Bali all have rates below $150.
Le Meridien Nirwana has rates as low as $95 for most nights in March. The Bali Hyatt was as low as $100 for most nights. There is a 21% tax and service fee.
Egypt has dirt cheap Le Meridien rates, Germany has European comforts at Le Meridien hotels in several cities in relaticely close proximity, and Bali has beach resort living.


Do the math: Le Meridien promotion awards 4 free nights at Le Meridien hotels for 7 Le Meridien stays by March 31, 2008. Starting at Le Meridien Bali and alternating nightly with Bali Hyatt means Day 1, 3, 5, 7 are at Le Meridien and days 2, 4, 6 at the Hyatt. 7 nights x $125 night = $875 for a week in Bali. Tokyo has two Le Meridien hotels and the rates are as low as $160/night all-in for some nights in March. Add $500 for 3 nights in Tokyo.

$1,400 for 10 hotel nights would earn Hyatt Platinum status (and free Clear Airport membership) and 4 free nights at a Le Meridien hotel to be used by March 31, 2009. Le Meridien Bora Bora is an eligible redemption hotel and this property will be reclassified as a Category 7 hotel next week for a nightly redemption rate of 30,000 points in low season and 35,000 points for high season.

The Hyatt lover loyalist could just bounce between the Hyatt hotels and quickly add up the Hyatt elite qualification stays with “Stays Count Double”. A two week Bali vacation could send you home with Hyatt Gold Passport Diamond elite status for under $2,000. The Stays Count Double promotion lasts through March 31, 2008.

The Loyalty Traveler Triple Pointer is American Airlines to Tokyo ($753 cost) and Platinum elite status through a challenge. Le Meridien Pacific Tokyo and Le Meridien Grand Pacific Tokyo and Le Meridien Bali for 7 stays and 4 free nights to come ($850 cost; future value about $2,000). 3 nights at the Bali Hyatt and Hyatt Gold Passport Platinum status with Stays Count Double promotion ($350 cost). $2,000 cost, plus a whole lot of added value for the Loyalty Traveler.
Loyalty Traveler sees the possibilities.

And if you don't have the miles for First Class to Bali, United members can fly between Tokyo and DPS, Bali airport for 40,000 United Mileage Plus miles. From the USA, Bali is a 60,000 mile economy award flight. Another option is 20,000 miles on United from Tokyo to Bangkok or Singapore, and then a second 20,000 mile award from that location to Bali. This earns an additional city for no additional miles.