Starwood Points - Cash Value

[SMHarman]

Over time Starpoints increase in upfront cost: lowest I have seen it was 1.9 cents per point in offer from Starwood. But the other factor to consider is the point values at hotels. These have increased over time as well. A hotel in Venice in 2010 was 10 K per night. Now it is 16K. Our favorite Aloft at PDX was 4K, and now 7K.

But starwood is upfront on the changes. They represent average cash room rate for the trailing 12 months dollarized. Row points should get cheaper in 2016/17 on that basis.
Anything in Brazil should be dropping a couple of catagores.

Some go up in category, some go down. They don't all go up every year.

I agree with your general observation, though. I won't return to some of my favorites since I can't justify the current category valuation.

 

[Ken555]

But starwood is upfront on the changes. They represent average cash room rate for the trailing 12 months dollarized. Row points should get cheaper in 2016/17 on that basis.
Anything in Brazil should be dropping a couple of catagores.

By that logic, we should also see a significant change for Canadian properties next year along with other countries, etc.


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[SMHarman]

Yes. Starwood pay the franchise owner for the cash value of the room.
If the room was CDN200 then a couplee of years ago they would pay USD200 now paying USD160 so goes from cat 5 to 4

 

[bizaro86]

By that logic, we should also see a significant change for Canadian properties next year along with other countries, etc.


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They're usually pretty good about also lowering where required. I've gotten some great deals on currency related drops in starpoint category in the past.

 

[Ken555]

They're usually pretty good about also lowering where required. I've gotten some great deals on currency related drops in starpoint category in the past.

Yeah, I've been following this for many, many years. My unsaid point was that this would be an easy method for Marriott to start to devalue StarPoints...I've never fully trusted the method Starwood uses to determine categories. I think there's a bit more than just average revenue per night per room over the previous year.


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[bizaro86]

Yeah, I've been following this for many, many years. My unsaid point was that this would be an easy method for Marriott to start to devalue StarPoints...I've never fully trusted the method Starwood uses to determine categories. I think there's a bit more than just average revenue per night per room over the previous year.


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It's a black box, for sure, but realistically they're not going to publish ADR/REVPAR numbers publically. Ultimately, I still feel starpoints provide me with comparable value to my 2% cash back credit card, so I'll keep getting them. If Marriott tries to stealth devalue them, I'll stop.

However, I think it is much more likely that the devaluation will be more overt, that starpoints will be converted to MRs at the worst rate they think they can get away with, and the SW hotels will move to MR categories, where they will be more expensive. I also wouldn't be surprised to see a new MR category at the high end for some the top tier SW properties.

 

[DavidnRobin]

Real life SP devaluation examples:
The 2 local SPG hotels we stay at (few times a year) are the Westin Napa and Sheraton Petaluma. Westin Napa went from 12K to 25K SP/nite and Sheraton Petaluma went from 7K to 10K SP/nite in 2015.

Those are huge devaluations - to the point of no longer staying at Westin Napa. Too bad - we spend quite a lot in the local economy during our stays. I understand that some decreased SP/nite as well - but I have no desire to stay in Nowheresville, AR.
I have stopped accumulating SPs, and looking to spend the ones I have (one last SPG stay). Good timing on AMEX-Costco split.

So glad we got to stay at Westin Napa (5th nite free) for 48K SPs in Sept'15 (made reservations prior to SP change), and got upgraded to a very nice 1Bd suite. That same reservation now costs 100K SPs. Going to miss staying there.

 

[Rsauer3473]

The Chamber of Commerce from Nowheresville, Arkansas, will be sending you a sharply nuanced letter shortly. No more Mr. Nice Guy.