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Today is April 30th, and that means it is the last day you can purchase Starwood Preferred Guest points with a 30% discount off the regular price. Buying miles and points obviously isn’t as good as getting them without an out of pocket cost, but it can still make sense when the cost of buying the points is less than the flight or hotel would have cost if paid for outright.
Getting 30% off the regular price for SPG points takes the price as low as 2.45 cents each if you purchase at least 20,000 points to trigger the 30% discount. They historically offer a discount or bonus on purchased SPG points every few months, and while this isn’t the lowest price I’ve ever seen, it is low enough to warrant doing the math if you are in need of some SPG points. To give a quick taste of why it can be worth it to purchase points at this rate, SPG award nights start at 2,000 points per night, which would come to $49 a night if you purchased points at 2.45 cents each. Going up a notch, Category 2 properties like the Sheraton Lake Buena Vista Resort near Disney World start at 3,000 points per night, which comes to about $73 per night at this rate.
Link: Starwood Buy & Gift Miles
Here is the price breakdown based on the number of SPG points purchased with this promo.
- Up to 5,000 points – 3.5 cents each (no discount)
- 5,000 – 9,000 points – 3.15 cents each (10% discount)
- 10,000 – 14,000 points – 2.975 cents each (15% discount)
- 15,000 – 19,000 points – 2.8 cents each (20% discount)
- 20,000 – 30,000 points – 2.45 cents each (30% discount)
To put some more numbers to it, vacation worthy Category 5 properties like the Westin Grand Cayman or Westin Whistler can be as low as 9,600 SPG points per night (plus resort fees) on five night award stays, which would be about $235 per night at 2.45 cents per point. That is not cheap, but paid rates at both of these hotels can be well more than double that rate during peak periods, so it can make sense in some situations.
Purchase American Airline Miles for 1.57 Cents Each
While I love SPG points for hotel stays, I know many like to use them to transfer to airline partners such as American Airlines, Alaska Airlines, and over a dozen more partner airlines. With many of these airlines, for every 20,000 SPG points you transfer you get 25,000 airline miles. Right now there is also a bonus on top of that when you transfer to American Airlines specifically as American is giving a 25% bonus when you convert your hotel points to American AAdvantage miles. This means that if you transfer 20,000 SPG points during their promo you actually get a total of 31,250 AAdvantage miles via the normal 5k bonus + 25% on that total.
If you were purchasing your SPG points today with the 30% discount for the purposes of transferring to American using their 25% bonus that would essentially come to just under 1.57 cents per purchased mile with is a very low price for AAdvantage miles. That particular 25% bonus from American runs through June 15, 2017, so you would have some time to make that transfer whether you purchased SPG points today with the 30% bonus or not.
If you do decide to take advantage of buying SPG points at a 30% discount today, I recommend paying with the Starwood Preferred Guest® Credit Card or Starwood Preferred Guest® Business Credit Card since they will provide a 2x bonus on purchased SPG points.
Editorial Note: The opinions expressed here are mine and not provided, reviewed, by any bank, card issuer, or other company unless otherwise stated.