Starwood Preferred Guest classifies 16 hotels in their highest Category 7 level requiring 30,000 points per night. A closer look at these hotels reveals that many of these properties are not available for 30,000 points per night despite the elimination of peak season rates for 2010.

SPG peak season rates for 2010 were eliminated for all SPG Free Night awards except for three hotels on the Costa Smeralda, Sardinia, Italy from July 1 to August 31, 2010 at a peak season rate of 35,000 points per night.

Cala di Volpe, 35,000 points

Hotel Pitrizza, 35,000 points

Hotel Romazzino, 35,000 points

There are other hotels which require additional points based on time of year, room types, and/or mandatory full board requirements. Here are ten uber-category hotels in Categories 5, 6, and 7.

1.       The Resort at Singer Island, Singer Island, Florida (Category 5: 24,000 to 64,000 points)

2.       Pine Cliff Residences, Albuferia, Portugal (Category 6: 40,000 to 100,000 points)

3.       St. Regis Resort Bora Bora, French Polynesia (Category 7: 60,000 to 140,000 points)

4.       Le Méridien Bora Bora, French Polynesia (Category 7: 60,000 to 140,000 points)

5.       W Maldives (Category 7: 60,000 to 140,000 points)

6.       Sunset Key Guest Cottages, A Westin Resort, Key West, Florida

(Category 7: 60,000 to 140,000 points)

7.       Mystique, Santorini, Greece (Category 7: 60,000 to 140,000 points)

8.       Cala Di Volpe, Porto Cervo, Italy (Category 7: 60,000 to 140,000 points)

9.       Hotel Pitrizza, Porto Cervo, Italy (Category 7: 60,000 to 140,000 points)

10.   Hotel Romazzino, Porto Cervo, Italy (Category 7: 60,000 to 140,000 points)

Half of SPG Category-7 hotels, 8 of 16 hotels in SPG Category 7 globally, have special points requirements and are not available for 30,000 points per night. In essence, 50% of SPG category 7 hotels are actually a higher category in terms of points. These additional points requirements are not fully transparent to the member to indicate what room types and seasons are charged at what rate for these “Category-7-plus” hotels.

I calculated the lowest paid rate cost of a 5-night St. Regis Bora Bora overwater suite to the value of 480,000 points for a 5^th night free award stay a few months back. At $4,850 for 5 nights based on November 2009 rates, I concluded that paying cash would be a better value than spending 120,000 points per night for a Bora Bora overwater bungalow. But I also see how $5,000 in spending spread out over many Starwood hotel stays could earn a large number of points if you decide to blast away at your accumulated points balance for a luxury vacation in the South Pacific.

(Loyalty traveler St. Regis Bora Bora analysis Oct. 25, 2009)

Starwood Hotels hotels = 961 hotels in global chain

Geographic and category distribution at higher category

SPG Category 7  =  16 hotels

• North America = 3 hotels

• Europe = 9 hotels

• Asia/Pacific = 4

SPG Category 6  =  46 hotels

• North America = 15 hotels

• Europe = 21 hotels

• Africa = 2

• Middle East =5

• Asia/Pacific = 3

SPG Category 5  =  119 hotels

• North America = 59 hotels

• Central & South America = 4 hotels

• Europe = 30 hotels

• Africa = 6 hotels

• Middle East = 9 hotels

• Asia-Pacific = 11 hotels

SPG Category 4  =  307 hotels

• North America = 153 hotels

• Central & South America =  11 hotels

• Europe =  52 hotels

• Africa =  10 hotels

• Middle East =  20 hotels

• Asia-Pacific =  61 hotels

Smith Travel Research in Hendersonville, TN is one of the leading hotel industry data reporters.  Last week the company published its 2010 hotel industry forecast. In the first month of 2010 the company is predicting hotel occupancy will remain flat in 2010 and finish the year at 55.1%. This is after an 8.7% drop in 2009. On average, across the U.S. hotels will go through 2010 just more than half-full.

A consequence of low occupancy is continued lower room rates. STR predicts the average rate of a hotel room will decrease another 3.3% this year to finish 2010 at US$94.39 per night. The average daily rate for U.S. hotel rooms fell over the 2009 year to $97.51, an 8.8% drop . (STR source)

Sure, you will still see $400 per night for many New York City hotels, but you will also see $35 per night rates at some Comfort Inns and Knights Inns around the country. And even those typically $400 a night luxury hotels will likely have rooms in the $200 range in many locations when travelers are not filling $400 per night rooms.

A luxury hotel takes five years or more to go from planning to opening. 2010 will see a large number of luxury hotels opening in the U.S. that looked like solid investments when they were initially planned way back in the boom of 2005. Demand is expected to pick up in 2010, led by the luxury and upper-upscale hotel market and business and leisure travelers. Unfortunately for the hotel industry, demand is expected to increase at the same percentage as new hotel rooms being added in 2010, 1.8% in the U.S.

This looks to be another year of unprecedented luxury hotel bargains. Grab them if you can as these deals may not be so readily available after 2010. 2009 was the most time I have spent in luxury hotels and the cost was less than I have ever landed luxury class hotels in my years of loyalty travel.

2009 was a tough year financially for the hotel industry, particularly in the U.S. The “great recession” of 2009 produced data harking back to the “great depression” of 1929. Mark Lomanno, president of STR, stated, “Good riddance to 2009, a year that we believe will go down as the worst in the modern hotel industry.”