Chase World of Hyatt for uncategorized spending instead of a 2% card?

[cws-21]

I currently have the AOD Visa Signature and hopefully it will not be nerfed for existing customers. However, I have been thinking about and researching alternatives just in case (and because I enjoy it). I focus entirely on cash back, but I will be applying for the Chase World of Hyatt this summer when I am 4/24. I mostly planned on getting the card for the free night which would offer a discounted weekend, once a year, in nearby NYC for my wife and me.

In checking out the World of Hyatt, I came across "Receive...an extra free night at any Category 1–4 Hyatt hotel or resort if you spend $15,000 in a calendar year," which I have dismissed multiple times because I didn't think I would ever spend even close to $15k on the card that would only really be used for Hyatt purchases. However, if I replaced a potentially nerfed AOD Visa Signature, and used the World of Hyatt for all hotel spending AND uncategorized spending I could probably reach the $15k mostly organically. If so, the World of Hyatt, on $15k of annual spending, would earn, at worst, 15,000 points (enough for a Category 1–4 hotel) and would earn a free night at a Category 1–4 hotel as well. I checked the prices for a night at two different Hyatt hotels in Jersey City, where my wife and I stay at least once per year, as an example and the average is $268 per night or 15,000 points. So, getting two free nights for $15,000 in spending works out to be a 3.57% return.

I have never thought of using the World of Hyatt for uncategorized spending, instead of a 2-3% card, but it seems like it could be well worth it. Of course, the two big caveats are that one must first stay at Hyatt hotels and also spend $15k in a year on the card, but I have a lot of uncategorized spending even though I have most of my bases covered with category-specific cards. Is there anything with which I am mistaken? Does anyone else use the World of Hyatt for uncategorized spending instead of something like a 2% card? Has everyone who can meet the spending been doing this and I am just really slow coming to the realization?

[wasCB14]

It can be a good value if you have several Cat 1-4 stays per year.

But the tradeoffs (as compared to actually getting 15k points) are:

1. Limited time to use the certificate (expiration)

2. Not useful if you want to stay at Cat 5+ properties (my hesitation)

3. No ability to recover any "surplus" if you use the certificate at a Cat 1-3 property.

[cws-21]

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@wasCB14 wrote:

It can be a good value if you have several Cat 1-4 stays per year.

But the tradeoffs (as compared to actually getting 15k points) are:

1. Limited time to use the certificate (expiration)

2. Not useful if you want to stay at Cat 5+ properties (my hesitation)

3. No ability to recover any "surplus" if you use the certificate at a Cat 1-3 property.

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Actually, @wasCB14, I think the World of Hyatt appears to have good value even if I, or someone else, were to stay at a Hyatt once per year. For paying a $95 annual fee and spending $15,000, a three-night stay could be completely paid in points. In my example of a Hyatt hotel in Jersey City, where my wife and I already stay, the cash value of the card would be over $700 annually. That same $15,000 would yield $300 with a 2% card. I am sure there are many other options, quite likely better options, if other points cards were to be used. However, the World of Hyatt seems like it would fit well in a cash back setup such as my own and could, perhaps only in some situations, result in a better return than a 2% card.

With that all said, I agree with you that the two free night certificates expire within 12 months, though the points earned would not. I, personally, could fairly easily stay at a Hyatt once per year. You're also right about not being able to use the certificates for Category 5+ hotels, but, for me, there are plenty of, especially Category 4, hotels with which I would be very content. To be honest, I would probably be staying at a Category 3 or 4 hotel whether or not I was using a free night certificate. Staying at a lower category hotel would definitely reduce the overal value of the card.

[okurosetta]

I think the math could certainly work out. With $0 annual spend and paying a $95 annual fee, you get Discoverist status (not worth too much, but something) and one Cat 1-4 certificate. Going off this as a base, spending an additional $15k per calendar year unlocks another Cat 1-4 certificate as well as at least 15k points. This would be more if used for certain 2x categories or the 4x at Hyatt, but since we're talking non-category we'll assume 15k. With your $286/night example (via certificate or 15k points), the $15k spend unlocks an additional $572 in value, so that $15k in spend would earn the value of 3.81%.

I did similar with the Hilton Surpass, though in that case you do not get a certificate with the annual fee (Gold status, 10x Priority Pass visits, some other perks) but the certificate unlocked at $15k can be used at any property so long as a Standard Room Reward is available. So far I have redeemed certificates at places going for $750-1350/night. Even if I valued a certificate at $400 and got nothing from the $95 annual fee, the $15k spend would add ~2% in value. We have historically seen .57cpp in Hilton Point value (based on prices we would pay), so 3x non-category is ~1.7% and thus ~3.7% with annual certificate. The 6x categories would be ~3.4% and thus ~5.4% with annual certificate, which makes it pretty good for those categories too, especially gas.

Specific to your example, this means I'm able to stay in midtown Manhattan (or other pricier neighborhoods) using a Hilton certificate, while Hyatt (and Marriott for that matter) would bump me out to Jersey or LIC. I'm not saying this would be a deal-breaker - we'll be staying in Jersey City in a few months to see a show at LPR, and since that is in the West Village, getting there from Jersey City via PATH will be faster than from 95% of NYC itself. So I totally get that staying within NYC isn't always the best, more laying out some personal context which shows you've thought this through well. And I'm not saying to pivot to Surpass, more including it as a similar example that definitely worked for non-category, for me.

[cws-21]

Thanks for the reply, @okurosetta. The value of the WoH is even better if, with my Jersey City example, you consider all quantifiable value including $173 ($268 - $95 annual fee) + $268 (15k points for $15k spend) + $268 (free night for $15k spend). This would yield the equivalent of over $700 cash back or a 4.73% return. This would be impressive, especially considering I would be spending the $15k in uncategorized spending and staying in Jersey City once per year anyway.

You make a good point about how the cost of a room at a particular hotel can dramatically change the math. I'm not familiar with the Hilton Surpass. Does it offer an annual certificate for paying the annual fee or are there any spend requirements for it?

[TSlop]

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@cws-21 wrote:

You make a good point about how the cost of a room at a particular hotel can dramatically change the math. I'm not familiar with the Hilton Surpass. Does it offer an annual certificate for paying the annual fee or are there any spend requirements for it?

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You'll have to spend $15k to earn a free night award. There is no annual free night included with the $95 annual fee, unfortunately.

[Aim_High]

I've seen other members talk about using the Chase World of Hyatt for general spend to get the free night, @cws-21, although it's not a common strategy.  You just don't hear a lot about it, but it's a good strategy for the right person.  As you said, it depends on several factors including the ability and willingness to meet the $15K annual spend as well as when/where they redeem their free night certificates. 

As mentioned, the main downsides include:

• There must be need for regular Hyatt hotel rooms.
• Free night certicates are perishable (usually within 12 months). 
• Free night value depends on the room cost at redemption time/place. YMMV.
• No ability to redeem for cash or via other methods than a free room night.

I've often suggested on My FICO that hotel travel cards are very useful, even for those who don't travel as often as might be required for good use of other mainstream travel cards.  I had the World of Hyatt card and thought it was great, but closed mine to consolidate with my CSR and to simplify my profile.  However, I've seriously thought of applying for it again (I'm outside 24 months from original application so I could earn the SUB again), and I've also considered the IHG Rewards Premier as well as Hilton Surpass or Aspire.  Several of these cards offer the opportunity to earn more than 1x point per dollar outside the hotel, such as WoH's 2x earnings at restaurants, airfare, transit, fitness centers; IHG's 5x on travel, dining, gas; and Surpass's 6x on dining, grocery, gas.   Any of these could be an "everyday" daily driver for someone wanting to earn outside hotel spend towards an annual vacation, for example.  

I never tried to use the $15K spend option to earn the free night, but I see how it could be attractive.

Other 2%+ options:

• With $100K in assets with Merrill Lynch and BofA Preferred Rewards Platinum Honors status, the Premium Rewards card earns 2.625% on everything and 3.5% on dining and travel, all uncapped.
• The Alliant CU Visa Signature  earns 2.5% up to $10K monthly with a few deposit requirements.  (see link)
• Chase Freedom Unlimited's 1.5% cash back, when combined with a Chase Sapphire Reserve, earns 2.25% to 3% in travel when URs are redeemed in-portal or transfer to partners.  This was my thought with WoH:  I could redeem URs for Hyatt stays (about 1.7 cpp) so my CFU was effectively a 2.55% cash back card (0.015 x 0.017) without having to monitor spend requirements.  And potentially higher than 1.7 cpp when transferred to airline partners.   IMO, CSR+CFU is a powerful two-card combo for those looking for a simplified wallet and willing to accept primarily travel redemption options.  However, unlike others like the WoH example you're considering, it also offers the flexibility of cash-out at 1 cpp minimum value.
• US Bank Altitude Reserve can earn 4.5% on mobile wallet purchases for travel redemption, and for those who have used it, I hear that it's easy to earn a lot of points on general spend even if mobile wallet quite as universal as a credit card. 
  

[Aim_High]

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@TSlop wrote:

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@cws-21 wrote:

Does it offer an annual certificate for paying the annual fee or are there any spend requirements for it?

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You'll have to spend $15k to earn a free night award. There is no annual free night included with the $95 annual fee, unfortunately.

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*ETA:  Apologies @TSlop since I didn't realize the discussion was regarding the Hilton Surpass and not the World of Hyatt card.

That's not correct, @TSlop.  Chase World of Hyatt includes one free annual night (awarded annually at renewal) at a level 1-4 property with the $95 AF and no other spending.  OP could earn the second free night with $15K annual spend.  And OP could actually earn the 3rd equivalent free night by the 15K or more points on that $15K spend.   Those 15K points could even be worth two or three additional nights at some properties, meaning the $95 AF + $15K spend = (5) free nights annually*. 

*While some level 5+ Hyatt properties go for 20K

points or higher per night, there are many lower

level 1-2 properties at 5K to 10K. 

That's all in addition to the 60K SUB which is worth up to (12) free nights at 5K point properties.

[cws-21]

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@Aim_High wrote:

I never tried to use the $15K spend option to earn the free night, but I see how it could be attractive.

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Thanks, @Aim_High. I always appreciate your insights. I am of two minds when it comes to the WoH. If my AOD Visa Signature is not nerfed for existing customers, I could still find value in the WoH, at the very least, for the annual free night for the cost of the $95 annual fee. I cannot justify hefty annual fees on travel cards, given my current lifestyle and family obligations, but a free night for $95 seems like a no-brainer. I would also, of course, still use it for the infrequent Hyatt stay spending.

The other option, if the AOD Visa Signature goes away for all of us, is to take advantage of the combination of a low annual fee, annual free night, annual night paid from points (assuming $15k spend), and annual bonus free night (assuming $15k spend). This combo in particular seems, for a hotel and travel card novice like me, to uniquely provide outsized value compared to other hotel cards to say nothing of the value of Hyatt points over some other hotel points.

As for other 2-2.5% cash back cards, I have looked at most and I thought I had settled on the SoFi Mastercard because I wanted a 2% Mastercard with no foreign transaction fees. I then read some horror stories on this forum and decided, for now, to go in a different direction. I then decided on the Visions FCU Elite Visa Signature, which is where I have been right up until considering the WoH primarily for uncategorized spending. 

Regarding @TSlop's comment, it was in response to my question about their Hilton Surpass rather than the WoH.

[cws-21]

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@okurosetta wrote:

I did similar with the Hilton Surpass, though in that case you do not get a certificate with the annual fee (Gold status, 10x Priority Pass visits, some other perks) but the certificate unlocked at $15k can be used at any property so long as a Standard Room Reward is available. So far I have redeemed certificates at places going for $750-1350/night. Even if I valued a certificate at $400 and got nothing from the $95 annual fee, the $15k spend would add ~2% in value. We have historically seen .57cpp in Hilton Point value (based on prices we would pay), so 3x non-category is ~1.7% and thus ~3.7% with annual certificate. The 6x categories would be ~3.4% and thus ~5.4% with annual certificate, which makes it pretty good for those categories too, especially gas.

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@okurosetta, I looked at two Hilton hotels in Jersey City and one requires 60k points/night while the other 70k points/night. The Hilton Surpass earns 3x points on uncategorized spending, which means $15k would yield 45k points. It seems to me, and I don't really know what I'm doing with hotel cards, that $15k on the Hilton Surpass would not even pay for a single Jersey City Hilton hotel stay. I also don't see anything on the Hilton Surpass website regarding a "certificate unlocked at $15k can be used at any property so long as a Standard Room Reward is available." What am I missing?