At Marriott and Hyatt the payment a hotel gets for your award night is not linked to the number of points you pay.
- Hotels receive a fixed amount based on their average daily room rate
- If they wind up full on the night of your redemption they get a much higher rate (according to a lawsuit the Parker Meridien hotels were even caught falsifying their occupancy to scam an extra 7 figures out of Starwood Preferred Guest)
Most hotels actually want your award business. If you’re taking up a room that would otherwise go empty, it’s pure marginal revenue. And if you’re taking up a room on a night they’re full they get a large payment – generally equal to their average rate for the year, though not as high as the highest rate they might charge on that night.
You should feel good about being an honored guest when redeeming points. You may not have been loyal to the particular hotel, but your stay is a reward for revenue to the chain and the hotel is well-compensated for it.
In fact with Hyatt’s category changes going into effect March 18 the Park Hyatt Hadahaa Maldives which is going up from a category 6 to category 7 hotel (25,000 points per night to 30,000) sent out a blast email hurry book now to save 5000 points.
We wish to share that effective 18 March 2019, 11:01 p.m. CT, Park Hyatt Maldives Hadahaa will be a category 7 property within Hyatt. This means point redemption will increase from 25,000 to 30,000 per standard Park Villa per night for bookings made.
Bookings made before 18 March 2019, 11:01 p.m. CT, your reservations will still follow the current award chart. Reservations made on or after 18 March 2019, 11:01 p.m. CT, will follow the new award chart.
Save 5,000 points and take this opportunity to secure your Maldives holiday
with us and book now
Pathway to Overwater Villas the Park Hyatt Maldives
The Park Hyatt Maldives does a lot of redemption business. People often want to spend their points at the most special properties in the chain, not at limited-service hotels in the Midwest. To be sure those have their place, and get redemptions, but the Park Hyatt in the Maldives relies on those redemptions to fill rooms clearly.
Some hotels will even argue their award category down in hopes of filling rooms with incremental guests, or because they don’t want to have the same points price of notionally ‘better’ properties within the chain in the same area. They want their fair share of award guests.
Not all hotels take this approach of course. The Andaz Maui seems to do its best to avoid award guests and elite benefits. The Andaz Maui gets a disproportionate number of redemptions, at least they did until they started playing games with ‘standard’ room award inventory.
View at the Andaz Maui
By the way for a standard room at Hilton the rate the hotel gets isn’t linked to points price either but reimbursement rates aren’t as favorable to hotels.