Are Hotel Credit Cards Worth It in 2023

Hotel credit cards can be a great way to earn rewards and benefits, but it's essential to understand the value they offer in 2023.

Many hotel credit cards offer a sign-up bonus, which can be a significant amount of points or miles. For example, the Hilton Honors Aspire Card offers a 150,000-point bonus after spending $4,000 in the first three months.

Hotel credit cards often come with an annual fee, which can range from $50 to $450 per year. The Marriott Bonvoy Boundless Credit Card, for instance, has a $95 annual fee.

To get the most out of a hotel credit card, you need to use it regularly and take advantage of its benefits.

If you're considering getting a hotel credit card, you have several options to choose from. The Marriott Bonvoy Boundless Credit Card offers a welcome bonus of 3 Free Night Awards, valued up to 50,000 points each, after spending $3,000 in the first three months.

This card also includes a free night each year after your cardmember anniversary at Marriott Bonvoy hotels that cost up to 35,000 points per night. You can even top-off these certificates with up to 15,000 Marriott points, giving you more flexibility.

Earning points on hotel spending is a key benefit of hotel credit cards. The Marriott Bonvoy Boundless Credit Card, along with other Marriott co-branded credit cards, offers 6x points on Marriott hotel spending, valued at a return of 4.2%. This is a good option for those who frequently stay at Marriott hotels.

However, it's worth noting that this return is not as good as some transferable points cards. On the other hand, there aren't many other ways to efficiently earn Bonvoy points, making these cards a good choice for those who want to accumulate points in this program.

The IHG One Rewards Traveler Credit Card offers a more generous bonus structure, with the potential to earn 80,000 bonus points with no annual fee. This card also offers 2x-17x points per dollar on various purchases.

To give you a better idea of the return on hotel spending offered by different credit cards, here's a comparison of the points valuations for different hotel loyalty programs:

This table shows that World of Hyatt offers the highest return on hotel spending, with points valued at 1.5 cents each.

Travel Protection is a must-have for any traveler, and some hotel credit cards offer incredible benefits in this area. The Chase Sapphire Reserve is a prime example, offering top-notch travel insurance and higher earning rates.

You'll earn 5x total points on air travel and 10x total points on hotels and car rentals purchased through Chase Ultimate Rewards after earning the $300 travel credit. This is a game-changer for frequent travelers.

Trip cancellation and trip delay insurance are included, giving you peace of mind in case your plans go awry. Primary rental car insurance is also provided, which can be a huge cost-saver.

Emergency evacuation insurance is also included, which is a rare and valuable benefit. This can be a lifesaver in a worst-case scenario.

The Chase Sapphire Reserve's annual fee of $550 may seem steep, but it's offset by the up to $300 annual travel credit. Plus, you get a complimentary two-year Lyft Pink All Access membership.

If you're looking for luxury hotel perks, consider a hotel credit card like the Platinum Card from American Express. This card offers complimentary Gold elite status with Hilton Honors and Marriott Bonvoy, which can get you room upgrades and bonus points on paid stays.

Gold status with Hilton even gets you free breakfast, currently offered as a food and beverage credit at U.S. hotels. The Amex Platinum Card also allows you to access Amex Fine Hotels and Resorts, a collection of luxury properties that offer benefits like complimentary upgrades and free breakfast.

The Amex Platinum has a $695 annual fee, but it's well worth the cost for travelers who value premium benefits at hotels without having to earn elite status with each chain.

Annual fees can be a significant consideration when deciding whether to get a hotel credit card. Some hotel credit cards come with annual fees as high as $650, like the Marriott Bonvoy Brilliant card.

However, you don't have to break the bank to enjoy the benefits of a hotel credit card. The Hilton Honors American Express Surpass Card, for example, has an annual fee of just $150.

If the annual fee is too high, you might want to consider a card with a lower fee, like the Marriott Bonvoy Brilliant's Chase counterpart, which has an annual fee of only $95. This card still offers automatic Silver elite status and Elite Night Credit for every $5,000 spent.

Here are some annual fees for popular hotel credit cards:

Some credit cards waive the annual fee for the first year, so it's worth checking the terms before signing up.

The Hilton Honors Aspire Card has an annual fee of $550, which is a significant expense. This fee can be offset by the card's many perks, including $200 in annual statement credits for flight purchases and $400 back on eligible purchases at Hilton resorts.

The card also offers a $100 statement credit for booking a two-night minimum stay at luxurious Waldorf Astoria and Conrad hotels, which can be a great value for frequent travelers. This benefit alone can help justify the annual fee for some users.

Cardholders receive Hilton's top-tier Diamond elite status automatically, which comes with perks like room upgrades and free breakfast. This status can add significant value to the card, especially for frequent Hilton guests.

The card earns a whopping 14 points per dollar on Hilton purchases, making it an excellent choice for those who frequently stay at Hilton properties. It also earns seven points per dollar on flights booked through AmEx Travel or directly through airlines, on car rentals, and at U.S. restaurants.

If the $550 annual fee is too high, the Hilton Honors American Express Surpass Card is a more affordable option, with an annual fee of $150. However, it doesn't come with a free weekend night automatically, and you'll need to spend $15,000 or more on it in a calendar year to earn one.

The $95 annual fee is a relatively affordable option for those looking to save some money. This fee is associated with the Marriott Bonvoy Brilliant card, but there's a Chase counterpart that offers a similar experience at a lower cost.

The Chase counterpart has automatic Silver elite status, which is Marriott's lowest tier. To upgrade to Gold, you'll need to spend $35,000 or more on purchases per account year.

You can earn six points per dollar on Marriott purchases with this card, making it easier to rack up points for free stays. This card also offers two points per dollar on everything else, providing a decent earning rate for everyday purchases.

Here are some key benefits of the $95 annual fee:

The Hilton Honors Surpass card has an annual fee of $150, a significant reduction from its pricier sister card. This fee is still relatively low compared to other premium credit cards.

The card offers impressive earning rates, including 12 points per dollar on Hilton purchases, making it a great option for frequent travelers.

You can earn a free night certificate by spending $15,000 in a calendar year, redeemable at nearly any Hilton property worldwide.

If you're looking for a hotel credit card, consider the Chase Sapphire Preferred Card, our top-pick credit card for travelers. It earns Chase Ultimate Rewards points, which you can redeem for travel bookings through the Chase Travel Portal or transfer to partners like Hyatt, Marriott, and IHG.

The Sapphire Preferred Card also offers excellent travel insurance, making it a good choice for hotel bookings and airfare. You'll get up to $50 per year in statement credits for hotels booked through Chase Travel, which can help offset the $95 annual fee.

The Ink Business Preferred Credit Card is another option, but it's a business card with a 3x points limit on the first $150,000 in combined purchases in bonus categories each account anniversary year.

The Chase Sapphire Preferred is a top pick for travelers who want to earn flexible points. It earns Chase Ultimate Rewards points, which can be redeemed for travel bookings through the Chase Travel Portal or transferred to partners like Hyatt, Marriott, and IHG.

This card offers excellent travel insurance, making it a great choice for hotel bookings and airfare. Recent updates include up to $50 per year in statement credits for hotels booked through Chase Travel.

You can earn 5x points on travel purchased through Chase Ultimate Rewards and 2x points on all other travel purchases, including hotels. The annual fee is $95, but with the statement credits, you can shave off more than half of it.

Here's a breakdown of the card's benefits:

Reviews of hotel credit cards often mention the sign-up bonus, with the Chase Sapphire Preferred offering a $600 bonus after spending $4,000 in the first 3 months. This bonus can be a significant advantage for travelers.

The Citi Premier card has a 60,000-point bonus after spending $4,000 in the first 3 months, which can be redeemed for $750 in travel. This bonus is a major draw for those who frequently book travel.

The Hilton Honors Aspire card offers a $250 statement credit after spending $1,000 in the first 3 months, plus a free weekend night reward after your first anniversary. This card is ideal for Hilton loyalists.

The Chase Sapphire Reserve card has a $300 travel credit, which can be used towards any travel-related purchase. This credit can be a game-changer for frequent travelers.

Reviews also mention the annual fees associated with these cards, with the Chase Sapphire Preferred having a $95 annual fee. This fee is relatively low compared to other premium travel cards.

Comparing hotel credit cards can be overwhelming, but it's worth taking the time to evaluate the offers you receive. You don't have to sign up for a credit card just because the credit card company sends you an offer in the mail.

Before applying for a new hotel credit card, consider the annual fee and APR, as they can greatly impact your decision. If you'll only have the card for a short time, the sign-up bonus will likely carry more weight.

It's essential to weigh the importance of the sign-up bonus against the ongoing rewards rate and annual fee. If you're looking for a long-term solution, the annual fee and rewards rate will be more crucial in your decision-making process.

Keep in mind that applying for a new credit card can cause a temporary dip in your credit score, so it's best to space out your applications.

Hotel credit cards offer a range of benefits that can be valuable to frequent travelers.

One of the primary benefits of hotel credit cards is the opportunity to earn free nights at hotels. For example, the Marriott Bonvoy Boundless Credit Card offers a welcome bonus of 3 Free Night Awards (valued up to 50,000 points each) after spending $3,000 on purchases in your first three months from account opening.

Some hotel credit cards also offer perks like room upgrades and late check-out. For instance, the IHG Rewards Club credit card confers automatic Platinum elite status, which means perks like room upgrades and late check-out.

In addition to free nights and perks, hotel credit cards can also offer rewards earning rates that are higher than those of transferable points cards. For example, the Choice Privileges Select Mastercard offers 10x points on Choice spending, which is valued at a return of 6%.

Here are some examples of hotel credit cards that offer high rewards earning rates:

For frequent IHG guests, a hotel credit card like the one mentioned in Example 2 can be a great option. The card's affordable annual fee and perks package make it worthwhile to carry.

You can earn 10 points per dollar on IHG stays, which is a great way to rack up rewards quickly. Additionally, you'll get automatic Platinum elite status, which comes with perks like room upgrades and late check-out.

If you spend $20,000 or more on the card per account anniversary year, you'll receive an additional 10,000 bonus points and a $100 statement credit. This is a great incentive to use the card frequently.

You'll also get up to $100 statement credit once every four years for a Global Entry or TSA PreCheck application fee paid for using your card. This is a convenient perk that can save you money in the long run.

Here are some key benefits of the IHG card:

The free night benefit is one of the most exciting perks of hotel credit cards. You'll get a free night award worth up to 40,000 points to use at IHG hotels each year after renewing and paying the annual fee.

IHG Rewards Club, the loyalty program of hotel brands like Intercontinental, Hotel Indigo, Kimpton, and Holiday Inn, offers this benefit. You can use the free night award at mid-range options like the Hotel Indigo Los Angeles Downtown, or even higher-end properties like the Intercontinental London Park Lane and Intercontinental Maldives Maamunagau.

Some hotel credit cards, like the Marriott Bonvoy Boundless Credit Card, offer a free night award worth up to 35,000 points every year after your account anniversary. This can get you a room at places like the The Blackstone, Autograph Collection, in Chicago, where starting rates can top $400 per night.

You can also earn 5 free nights, valued up to 50,000 points each, after using your card to make $5,000 in purchases in the first three months with the Marriott Bonvoy Boundless Credit Card.

Here are some hotel credit cards that offer a free night benefit:

Note that the value of the free night benefit will vary depending on the hotel and room you choose.

Hotel credit cards aren't perfect for everyone, they more or less tie you to a particular hotel chain.

One major drawback is that hotel credit cards often have blackout dates for booking rooms with rewards, which can limit your flexibility.

If you value flexibility, you might be better off with a general travel rewards card that lets you earn points redeemable on flights, lodging, taxis, and other travel-related expenses.

Hotel credit cards may also have a minimum redemption threshold, requiring you to accumulate a certain number of points before you can redeem them. For example, a card might need you to acquire 5,000 points before you can redeem points.

Hotel credit cards aren't perfect for everyone, especially if flexibility is your top priority. They often tie you to a particular hotel chain, limiting your options.

You might find yourself stuck with blackout dates for booking rooms with rewards, which can be frustrating. This means you can't always use your points to get a free room.

Some hotel credit cards have a minimum redemption threshold, requiring you to accumulate a certain number of points before you can redeem them. For example, you might need 5,000 points to get a free room, which can be a long wait.

This threshold can be even higher for fancier rooms and hotels, making it harder to use your points when you need them. Unless the hotel allows you to combine cash and points, you'll have to wait until you've reached the threshold.

Even hotel credit cards that let you transfer points to an airline frequent flyer program might not be the best deal. Check the point-mile exchange rate to see how many points you'll need to spend to get a mile with a participating airline.

Opening a hotel credit card can cause a temporary dip in your credit score due to the credit inquiry required for approval.

This dip is usually short-lived, but it's essential to be aware of it. Applying for multiple credit cards in a short period can further impact your credit score.

Having a hotel credit card can actually help your credit score in the long run if it reduces your credit utilization ratio. This is because having more available credit can improve your credit utilization ratio, which is a key factor in determining your credit score.

If you're on the edge of the acceptable credit score range for a hotel credit card, consider boosting your score before applying to avoid having your credit score dinged.

You can avoid paying interest on your hotel credit card by paying the full statement balance before the grace period ends, which is around 23 to 25 days.

If you're new to credit cards, it's essential to understand how to avoid interest payments. Credit cards generally offer a 23 to 25 day grace period.

To make timely payments, keep an eye on your statement balance and pay it off before the grace period ends. This way, you won't accrue interest charges.

If you've had trouble paying your credit card bills in the past, it's a good idea to look for a card with a low APR. This will help you avoid interest payments and save money on interest charges.

You can also set up auto-payment to charge you the full statement balance each billing cycle, ensuring you never miss a payment. This way, you can avoid paying interest on your hotel credit card.

Hotel credit cards can be a great way to earn rewards and benefits, especially for frequent travelers. The application process is relatively straightforward and can be done online or by phone.

To be eligible for a hotel credit card, you typically need to have a good credit score, which is 700 or higher. This is because hotel credit cards often come with high credit limits and are considered a type of rewards credit card.

The credit score requirement is based on the card issuer's evaluation of your credit history and credit utilization ratio. This means that if you have a history of making on-time payments and keeping your credit utilization ratio below 30%, you're more likely to be approved.

In some cases, you may be approved for a hotel credit card even with a lower credit score, but be prepared for a higher interest rate and fewer benefits.

Having a hotel credit card can be a great way to earn rewards, but it's essential to manage it wisely. A higher credit limit can be a double-edged sword, as it may tempt you to overspend.

To avoid this, it's crucial to have a plan in place to keep your spending in check. This might mean deciding which card to use for which expenses, such as using a cash back card for bonus categories that earn 5% cash back each quarter.

You should also keep an eye on your credit card statements to ensure your spending hasn't crept up since getting the new card. If it has, you may need to put yourself on a budget.

Ultimately, the decision of whether to keep your old card(s) after getting a hotel credit card is a personal one. Some people find it advantageous to combine a cash back card and a rewards card, but others may prefer to pay only one annual fee.

You can pay your hotel credit card bill by mailing a check, paying online, or using a mobile app. You can even set up auto-payment to ensure you never miss a payment.

To avoid paying interest, pay the full amount of your statement balance before the grace period ends, which is around 23 to 25 days.

Paying the minimum payment will result in interest charges, so make sure to pay the full amount if you can. Your APR will give you an idea of the interest you'll pay on any credit card debt.

If you're worried about racking up interest, consider setting up auto-payment to charge you the full statement balance each billing cycle. This way, you'll always pay the full amount before interest is accrued.

Closing accounts after getting a new one can be a tricky decision, especially if you're considering a hotel credit card. Ultimately, the decision is a personal one.

Some people may not want to pay more than one annual fee, which is a valid concern. You might be better off keeping your old card if it has no annual fee.

You might wonder if having multiple credit cards will tempt you into overspending, and that's a good point to consider.

Before applying for a hotel credit card, take a look at your previous year of spending to see if you consistently spend on chain hotel rooms. This will help you determine if a hotel credit card would save you money.

To make the most of a hotel credit card, stay at the relevant hotel chain when you can, and take advantage of the sign-up bonus. This will help you earn points that can be redeemed for free nights.

Consider the rewards categories offered by the card, such as earning 12 points per dollar spent with the hotel chain, six points per dollar spent on restaurants, supermarkets, and gas, and three points per dollar on all other purchases. This will help you understand how the card will benefit your spending habits.

Be cautious about including the value of upgrades when evaluating a hotel credit card, unless you currently pay cash for upgrades. This is because upgrades may not represent a true savings, but rather an extra perk.

To get the most out of your hotel credit card, keep your credit utilization ratio below 30% and pay your balance in full each month. This will help maintain a high credit score.

Here are some key things to keep in mind when evaluating a hotel credit card:

Hotel credit cards are worth it if you frequently stay with a particular hotel chain and like earning points with its loyalty program.

You'll earn bonus points and get hotel-specific perks during your travels if you choose a hotel credit card that aligns with your hotel chain of choice.

Most major hotel chains offer no-annual-fee credit cards, but they typically come with smaller welcome bonus offers, lower earning rates, and fewer perks.

If you're loyal to a certain chain and don't want to pay an annual fee, consider a no-annual-fee hotel card, but be aware of the limitations.

You're probably better off with a general travel rewards card, like the Sapphire Preferred Card or The Platinum Card from American Express, if you don't stay with a single chain often.

Hotel credit cards are worth it if you can use the benefits they offer, such as automatic elite status, anniversary free nights (or points), and other travel perks.

Hotel credit cards work by releasing rooms for reward purchase, similar to how airlines open up seats for customers who want miles.

You'll need a certain number of points to book a free room, and the number required depends on the card, hotel, and room type.

Some rewards programs let you combine points with cash to earn free rooms more quickly, essentially giving you a discount on a hotel room.

Hotel stays aren't the only thing you can get with credit card rewards - you can also redeem points for upgrades or transfer them to a frequent flyer program.

Booking in advance and being flexible with your travel dates can make it easier to use your rewards for a free hotel room.

Hotel credit cards can be a good option for those who frequently stay at a particular hotel chain. Marriott Bonvoy credit cards offer 6x points on Marriott hotel spending, which I value at a return of 4.2%.

This return is not as good as some transferable points cards, but it's still a decent option. Some may prefer to use a Marriott co-branded credit card to efficiently earn Bonvoy points, which can be used for travel rewards.

The Bonvoy Bevy Card offers a bonus 1,000 points per eligible Marriott stay for cardmembers, which can add up quickly for frequent travelers.

As you weigh the pros and cons of a hotel credit card, consider the impact on your credit score. A hotel credit card can be a great tool for earning rewards and benefits, but it's essential to make timely payments to avoid damaging your credit score.

Some hotel credit cards offer perks like free breakfast and room upgrades, but these benefits may come with a higher annual fee. Be sure to factor in the cost of the card against the value of the benefits it provides.

The sign-up bonus for a hotel credit card can be a significant incentive, but it's crucial to understand the requirements for earning it. For example, the card may require a minimum spend within a certain timeframe to qualify for the bonus.

The hotel credit card's rewards structure can also impact your decision. Some cards offer a flat rate of points per dollar spent, while others offer a variable rate that can change over time.

Hotel credit cards are not the ideal choice for a balance transfer, but some do offer 0% APR on balance transfers.

You'll typically want a card with a 0% APR for the first six, 12, or 18 months to avoid interest on transferred balances.

Most hotel credit cards don't have these introductory APR offers, so it's essential to research carefully if you're set on getting a hotel credit card and want to tackle old debt.

If you do find a hotel credit card with a 0% APR on balance transfers, it can be a win-win, allowing you to pay down old balances without sacrificing rewards for future spending.

Considering a cash advance can be a tempting option, but it's essential to understand the costs involved. A flat fee of around $35 is often charged, and some cards may impose a percentage-based fee as well.

Getting a credit card cash advance is an expensive way to get your hands on some cash. The money you get will immediately be subject to an APR, which is usually higher than regular purchase APRs on the same card.

Cash advance APRs are notoriously high, making it difficult to repay the borrowed amount. This can lead to a cycle of debt that's hard to break free from.

If you're considering a cash advance, take a closer look at your card's terms and conditions to understand the fees and interest rates involved.