20k = $430 = 8k + $150

and subtracted $150 from $430 = $280, and the 8k from the 20k = 12k. Somehow it made sense at the time to simplify the equation to:

12k = $280, when technically it should have been:

12k – $150 = $280, or 12k = $430 = 3.5 cents.

And you’re right, the 20k should have even come into the equation in the first place. the easy way to do it is the way you did:

$430 = $150 + 8k

$280 = 8k. $280 / 8k = 3.5 cents.

Sorry, it’s been awhile since I’ve taken Algebra. Keep up the good work!

You have three payment choices for a SPG category 6 hotel night:

1)$430 after tax
2)20,000 points
3)$150 + 8,000 points if Cash & Points is available

12,000 points does not come into the equation.

I compared a Cash & Points award to a paid stay. The points-only award is not a factor in this. In general the points-only award will almost always have a lower cash equivalent points value than a Cash & Points award.

I compared a Cash & Points award to a paid hotel night after including tax. In my experience there is generally no hotel tax paid on the cash portion of a Cash & Points award stay although some hotels will charge hotel tax on the cash portion.

Paid night: Assume a SPG category 6 hotel with $385 nightly rate + 12% hotel tax = $431.20 for one night.

A 20,000 points award night would have a value of $431.20/20,000 points = $21.56 per 1,000 Starpoints.

Rather than paying $431.20 or using all points for a free night the better value might be the option of a Cash & Points category 6 award for $150 + 8,000 points.

In this example you are still paying $150 of the $431.20 nightly rate. You are essentially exchanging 8,000 points for $281.20 in cash saved.

$281.20/8,000 points = $35.15 value per 1,000 points.

The simplicity of this points valuation ignores the fact that a paid stay would earn points, elite credit, and likely some kind of SPG promotion credit.

$385 per night would earn 770 points for a base member or 1,155 points per night for elites. Incidental spend and Platinum amenity will be same for Cash & Points award stay as a paid stay.

The points are redeemed for higher value using Cash & Points ($35.15 per 1,000 points) than using 20,000 points for the free night ($21.56 per 1,000 points).

in calculating original room rate after tax, you must mean after tax + not counting the co-pay for Cash & Points. I.e you have category 6, $35 per 1000 = room rate of $430, which saves 12,000 points ($150 + 8,000 vs. 20,000).

However, the original room rate would have to be $580 after tax for the redemption to be $35/1000.

$580 = 20,000 = ($150 + 8,000). 12,000 pts = $430, = $35.8 per 1000 pts. At an after tax room rate of $430 originally, the calculation is as such:

$430 = 20,000 = ($150 + 8,000), or $280 = 12,000 pts. Redemption of $23.3 per 1,000 pts. Am I looking at this wrong?

I’m Out!

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