Does it make sense to redeem World of Hyatt points for all-inclusive resorts?

news7g08/09/2023

3 6 minutes read

Hyatt’s collection of brands has been growing at an impressive rate.

Along with existing brands like Park Hyatt, Andaz and Thompson Hotels, Hyatt’s all-inclusive offerings have swelled by 100 properties with the recent addition of the Secrets, Dreams, Breathless, Sunscape, Alua and Zoetry brands.

As with “room only” properties, you can redeem World of Hyatt points for these all-inclusive properties. However, since you receive far more than a comfortable room, all-inclusive redemptions use a special award chart with different redemption rates.

Hyatt points are undoubtedly valuable, so does it make sense to redeem them for all-inclusive options? After a recent stay at Hyatt’s Zoetry brand, I crunched the numbers to find out.

How to book all-inclusive properties with World of Hyatt points

All-inclusive resorts

Standard rooms at Hyatt all-inclusive resorts start from 12,000 points per night for an off-peak Category A property. Rates go up to 58,000 points per night for a Category F peak room. Suites start from 24,000 points per night for a Category A room during off-peak season. The rates increase to 115,000 points per night for a Category F peak room.

With TPG’s current valuation of Hyatt points at 1.7 cents each, you will need between $204 and $1,995 worth of Hyatt points per night.

Note that redemptions cover two people, even if you are traveling solo. At the same time, cash rates are usually cheaper for solo travelers, given the substantial cost of food and beverages for the second traveler. Because of this pricing structure, if you travel solo, you will likely get a better deal with a cash rate than by redeeming your Hyatt points.

If you are traveling with children, it will usually be the same price to book two rooms (with two people in each) as it is to book four people in one room. That’s because you’ll need to redeem extra points for the additional two children in that room.

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The Category C all-inclusive Zoetry Mallorca property I stayed at recently will cost you 25,000 World of Hyatt points per night for entry-level rooms on standard dates. These bookings include the Endless Privileges (all-inclusive) package for up to two guests. Endless Privilege includes the following:

Nightly accommodation
All meals and snacks, including a la carte dining at breakfast, lunch and dinner and 24-hour room service with no delivery charges
Alcoholic and nonalcoholic minibar, refilled daily
All nonalcoholic drinks on the property and most alcoholic drinks (but while all beers, spirits, wines by the glass and cocktails were included, Champagne and vintage wines by the bottle were not)
A 20-minute massage
Use of on-property facilities like three swimming pools, tennis courts and bicycle hire

Cash rates range from $175 for entry-level rooms with breakfast to $325 for Endless Privileges on off-peak dates. During peak dates, the bed and breakfast rate costs $277 per night, while the Endless Privileges package costs $470 for double occupancy.

With peak and off-peak pricing, I could part with as few as 21,000 Hyatt points per night, up to 29,000 points on peak dates. Using our 1.7 cent valuation of Hyatt points, I’d receive about this value compared with cash rates on most dates. So, it would be a good redemption.

Nevertheless, it’s still a lot of points to redeem — the same as non-all-inclusive Category 6 properties in the World of Hyatt program. This includes an array of luxury resorts, including several top Andaz properties. And with non-all-inclusive Category 1 Hyatt properties available from just 3,500 points for a night, is it worth using your points for an all-inclusive experience? That would depend very much on the property.

If you don’t drink alcohol and don’t plan to eat most of your meals on the property, you may find it’s not worth the extra expense. At the Zoetry property I recently stayed at, I found the quality of the food, beverages and service to be excellent and significantly better than I was expecting for the price.

I would value breakfast and lunch at this property at $25 per person and dinner at about $60. A few cocktails and glasses of wine throughout the day would easily be another $60.

For two people staying together, that’s $340 of value each day just on food and beverages, excluding the value of the accommodation and other on-site amenities. Whether paying $325 to $470 in cash or 21,000 to 29,000 World of Hyatt points per night, I thought it was well worth the cost.

On the other hand, my stay at a Zoetry property in the Dominican Republic last year was more expensive than this, with cash rates up to $1,000 per night. Despite the cost, it provided an inferior experience, especially concerning service and beverages. I did not think it was worth the high prices charged and would not recommend redeeming World of Hyatt points at this property.

While not every all-inclusive property will be perfect, if you do your research to book a well-rated property, share a room with someone else and have most (if not all) of your food and drinks on the property, you should easily get your money’s worth.

Miraval resorts

However, it’s worth noting that there’s a separate award chart for one of Hyatt’s other all-inclusive brands: Miraval. The brand has properties in the Berkshires in Massachusetts, outside of Austin, and in Scottsdale, Arizona.

Award nights at Miraval resorts include accommodation, a $175 resort credit per person, gourmet cuisine, snacks and nonalcoholic beverages, complimentary wellness activities, lectures, fitness classes and more.

Because of the high-end nature of these properties, they use a separate World of Hyatt redemption chart.

Looking at the well-regarded Miraval Berkshires, you can redeem 72,000 Hyatt points per night on peak dates this summer for double occupancy in standard rooms. This is a substantial number of Hyatt points, but in return you get a luxury all-inclusive accommodation without leaving the mainland U.S. (though alcoholic beverages are not included).

There are no resort fees on World of Hyatt redemptions, and cash rates this summer run up to $1,839 per night. This would give you a redemption value of well over 2 cents per point, a great use of Hyatt points and another reminder of their value.

Miraval Berkshires is offering a third night free on cash rates this summer (but not on redemptions). So if you are looking to stay more than two nights, it may make more sense to book a cash rate with the 33% discount.

Whether you believe there is value in spending almost $2,000 per night on domestic accommodation is a personal choice. However, TPG staffers who have stayed at Miraval properties generally had positive experiences.

How to earn World of Hyatt points

If you’re hoping to use rewards for an upcoming all-inclusive stay, there are many ways to earn World of Hyatt points.

The World of Hyatt Credit Card has a $95 annual fee and offers up to 60,000 bonus points for new cardholders. You’ll earn 30,000 bonus points after spending $3,000 on purchases within the first three months from account opening. Plus, earn up to 30,000 more points by getting 2 bonus points per $1 spent on purchases that normally earn 1 point (on up to $15,000) in the first six months of account opening.

Beyond the welcome bonus, here’s what you’ll get with the card:

An annual Category 1-4 free night certificate
A second Category 1-4 free night certificate by spending $15,000 on the card in a calendar year
Automatic Discoverist status for as long as your account is open
Five elite nights every year, plus two elite nights every time you spend $5,000 on the card

The World of Hyatt Business Credit Card ($199 annual fee) offers 60,000 bonus points after you spend $5,000 in the first three months from account opening. Here are some of the benefits of the World of Hyatt Business Credit Card:

$100 in Hyatt credits each anniversary year; spend $50 or more at any Hyatt property and earn $50 statement credits up to two times each anniversary year
Hyatt Leverage membership
Discoverist status for the cardholder and up to five employees
Earn five tier qualifying night credits for every $10,000 spent on the card in a single calendar year

You can also transfer Chase Ultimate Rewards points to World of Hyatt at 1:1 from cards like the Chase Sapphire Preferred Card, Chase Sapphire Reserve and Ink Business Preferred Credit Card.

Bottom line

Compared to some incredibly affordable Hyatt redemptions, the award charts for all-inclusive and Miraval properties may initially seem very expensive. Keep in mind, however, that virtually everything is included with all-inclusive accommodation. If you plan to have most of your food and drinks on the property during your stay, you can get a lot of value for your money or Hyatt points.

I would not hesitate to redeem Hyatt points at the last Zoetry property I stayed at, but I recognize not all-inclusive are this well-regarded.

If this type of accommodation experience appeals to you, consider aiming for one of the more luxurious all-inclusive options (a Category C or above) and do your research to ensure the property is highly reviewed by past guests. If you plan to have most of your meals and drinks at the property and choose a nice resort, you can expect this to be a smart World of Hyatt redemption.

news7g08/09/2023

3 6 minutes read