With some great offers out there now like the 100,000 point offer on the Marriott Bonvoy credit card, hotel credit cards have some great benefits.
They range from cards with no annual fee to $95+ in fees.
Most offer a free annual night worth more than the annual fee though.
Some, like the Hilton Surpass card, cover valuable elite status.
For most people, hotel credit cards are definitely something to have in your wallet.
Here are 5 reasons why:
5 Reasons To Get A Hotel Credit Card
1. Free annual hotel night
Most hotel credit cards with annual fees give you a free night certificate each year.
In my opinion, this is the best feature of hotel credit cards.
Most charge a $95 fee again.
This is what justifies this fee and has kept several cards in my wallet for years.
For instance, the Marriott Bonvoy Boundless credit card comes with an annual free night that can be redeemed for a category 1-5 hotel or 35,000 points.
You cannot redeem category 5 hotels at peak price though.
What can that get you?
The W Atlanta Downtown, a category 5 hotel, is $232 right now with taxes.
This is during a pandemic though.
You probably can get more, so for the $95 fee, you get a $235+ hotel.
Again, sure you can get more value than that though.
2. Credit card sign-up bonuses
As usual, credit card sign-up bonuses are the easiest way to get free travel, even hotel stays.
Hotels credit cards are no exception.
The above Marriott Bonvoy Boundless card has a sign-up bonus of 100,000 points right now, valued at $600.
Marriott points are worth $.60.
That could be a week or more of hotels (category 1 ranges from 5000 to 7500 Bonvoy points).
3. More points at your favorite chain
If you stay at a particular chain, hotel credit cards will earn you additional points when you use the credit card to make a hotel purchase.
A credit card like the Hilton Aspire can earn you an additional 14 points per dollar.
That is on top of base points and elite status points.
Base points at Hilton hotels are 10 points per dollar (except Tru and Home 2 where they are 5 points per dollar).
So, if you had a $150 Hilton stay, you would earn 1500 Hilton points at 10 points per dollar,
With Hilton Diamond status you would earn another 1500 points.
For having the Hilton Aspire card, you would earn an additional 14 points per dollar, bringing your total to 34 points per dollar (10 base points, 10 points for Diamond status, and 14 points per dollar for the Aspire card).
Even if you had the no annual fee Hilton card, you would earn 7 points per dollar.
Since that card gives you Silver status, you earn 10 base points per dollar, 2.5 points for Silver, and 7 points per dollar for the credit card.
That is still 19.5 points per dollar.
4. Elite status
Again, the no annual fee Hilton credit card will give you Silver status.
If you paid $95 a year for the Hilton Surpass card, you would get valuable Gold status that gives you free breakfast.
If you had a family, this could easily justify the fee with a couple of hotel stays.
RELATED: 8 Credit Cards That Will Give You Hotel Elite Status Just For Having A Credit Card
5. Earn additional elite credits or another free night
Hotel credit cards also give you the chance to get closer to elite status with a certain number of credits.
For instance, the Marriott Bonvoy credit card gives you 15 credits toward elite status.
The sweet spot in the Marriott program is Platinum that gives you free breakfast and many other perks.
Platinum status takes a whopping fifty stays a year though.
With the Bonvoy card, you need 35 more stays.
Marriott announced that you could stack at least one other card and get closer to elite status.
This may be just during the pandemic though as they usually only let you earn 15 elite credits a year with credit cards.
Don’t think elite status is just for road warriors either.
If you are loyal to a certain brand, perks like free breakfast and upgrades are worthwhile.
In the present, I have the following elite status with three chains:
- Marriott Silver
- Hilton Gold
- IHG Gold
I was Marriott Gold and IHG Platinum for years before I took time off travel.
Though I stayed at fifty hotels a year in the past, I am not a road warrior or business traveler.
Most of my elite status comes from holding credit cards.
So, if you stay more than a couple times a year at a particular chain, you should definitely have elite status.
I used to be Marriott Gold when Gold was the sweet spot before the program was combined with the SPG program.
Again, Platinum status is the sweet spot now.
I plan to get Platinum status in the future.
Again, Platinum is fifty stays a year, so 15 credits will get me closer to my goal of Platinum in the future.
Cards also allow you to spend additional money on the card for an additional free night.
For instance, if you spend $15,000 per year on the Hyatt credit card you will earn an additional category 1-4 free night certificate.
Who should get a hotel credit card?
Like any type of credit card, no credit card is for everyone.
Here is who should get a hotel credit card:
- You will stay at the chain at least once (covers the fee).
- You are loyal to one brand.
- You will stay enough to get many of the perks.
Basically, if you stay at chain hotels even a couple times a year, you should have a hotel credit card.
Remember, the all have credit cards with no fees too though you will usually get more value by paying a fee.
Why most people should choose the hotel card with a fee over the no annual fee card
Most hotel credit cards have an annual fee as well as a no annual fee card again.
It may seem that a no annual fee card is a no brainer.
For most people, this is not true though.
I used to fear credit cards with annual fees.
Later, almost all of my credit cards have annual fees.
That is because credit cards with fees tend to pay for themselves.
Remember, I don’t believe in spending a lot of money on travel.
For example, the no fee Marriott Bold card does not offer a free night certificate.
Again, the Marriott Boundless card with the $95 fee gives you a free night certificate that can be valued at $250+ in our earlier example.
So, basically for the $95 fee, you get a $250+ hotel.
If you were going to stay at least once a year at a Marriott hotel, you would come out ahead by paying $95.
No Marriott hotel in the United States will be less than $95 after taxes.
You will probably get an upgraded hotel stay too.
If you were going to purchase a mid-range Courtyard anyway, your certificate could get you a W Hotel or maybe even a Ritz-Carlton for the same $95 fee that the credit card costs.
Why Hotel Credit Cards Should Not Be Your First Credit Cards
Although hotel credit cards offer lots of benefits, , they should not be your main credit card.
Hotel credit cards are not as flexible as general travel credit cards like the Chase Sapphire Preferred.
They only help you earn points at hotels.
They will not earn you flights, car rentals, etc.
They are also not worth putting almost of your credit card spend on although they are good for spending at hotels.
Hotel points are not as valuable as travel credit cards points.
Generally, they are worth less that a $1.
Points on a cards like the Chase Preferred card are valued at around $1.50.
So, you would not get a high as a return if you put spending other than hotel purchases on them.
So, first get a card like the Chase Sapphire Preferred, then later get a hotel credit card to further maximize your points.
The same is true of airline credit cards.
In general, your spending earns you more for your points with general travel credit cards again.
Summary
Hotel credit cards are great if you will stay at a particular chain.
Honestly, if you would stay at least once a year at a particular chain, you will cover the annual fee.
In addition to the valuable annual free night, hotel credit cards give you valuable perks like additional ways to earn hotel points, elite status and much more.
Although they should not be your main credit card, they can maximize your point earning capability after you have other cards like the Chase Sapphire Preferred or Chase Freedom Unlimited.
I have had most major chains’ hotel credit cards for years and gotten a lot of value.
Limited time offers on credit cards only come a couple of times a year, so take advantage of current credit card offers like the Marriott Bonvoy Boundless or Hilton Aspire with its $250 dining credit until the end of the month.
Again, cards with fees will give you more value if you will stay at least once a year at the chain.
The annual free night will give you as much or more than $250 in value.
This is why hotel credit cards stay in my wallet.
If you were going to stay at a chain’s hotel at least once a year, you will cover the fee and then some.
So, hotel credit cards should be a no brainer for most people.
