Should you invest in Starpoints now?

12

Starwood is once again offering 35% off on the purchase of SPG Starpoints through July 20th. This means that it’s possible to buy Starpoints for 2.275 cents each.  And, since Starpoints convert to Marriott Rewards points 1 to 3, that’s equivalent to buying Marriott Rewards points for 0.75 cents each.  Considering that Marriott sells points for 1.25 cents each, this is a relative bargain.

But…

The fact that Starpoints / Marriott Rewards points are available for purchase at a very low relative price does not mean that it makes sense to buy them.  Whether or not buying points makes sense depends entirely upon how you plan to use them.

Let’s look at various uses for Starpoints & Marriott Rewards points to see whether this is really a good deal…

Domestic Round Trip for $455

a group of people sitting in an airplane

Many airline programs charge 25,000 miles for a domestic round-trip economy award.  Given that Starpoints transfer to airline miles at a rate of 20K Starpoints to 25K miles, we can estimate the cost to buy a round trip ticket as follows:

  • Buy 20K Starpoints for $455
  • Convert 20K Starpoints to 25K miles
  • Result: Round trip economy ticket for $455

Verdict: Bad Deal

Why: Round trip domestic economy awards are usually available for 25K miles only when the flight is far from full.  When that’s true, it is usually possible to get a good cash price for the same flights.  Last minute flights can be an exception.

Top Tier SPG or Ritz hotel for $455

a restaurant on a hill with a pool and trees
Mystique, a Luxury Collection Hotel, Santorini

In August, Starpoints will automatically be converted 1 to 3 to rewards points.  And, from August to early 2019, the newly combined Marriott / SPG / Ritz award chart will top out at 60,000 points per night.  This means that during that window it will be possible to book the most expensive SPG and Ritz properties for the equivalent of 20,000 Starpoints per night.  Via this promotion, each free night will cost you $455.  Or, if you take advantage of 5th night free awards, you can average $364 per night for a 5 night stay.

  • Buy 20K Starpoints for $455
  • In August, 20K Starpoints automatically convert to 60K rewards points
  • Between August and early 2019, book top tier hotels for 60K rewards points per night
  • If you have enough points, take advantage of 5th night free awards

Verdict: Bad Deal*

Why: Many top tier properties are routinely available for under $500 per night, especially if you watch for sales.  If you buy Starpoints now with the hope of booking a top tier property that is usually much more than $500, this can offer very good savings, but it still locks you into having to finalize your travel plans before early 2019.

* This would be a good deal if you have specific plans to stay at a hotel that costs much more than $455 per night and if standard rooms are available during your travel dates.

Mid Tier Hotel for $273 per night

a room with a bed and a table and a chair
Residence Inn New York Central Park

When Marriott unveiled future award pricing for New York City and a few other markets, we were surprised to see that a number of New York City hotels will be available for only 35,000 rewards points per night.  That’s equivalent to 11,667 Starpoints per night.  With the current promotion, you could buy 12,000 Starpoints for $273 and have a few points left over.

  • Buy 12K Starpoints for $273
  • In August, 12K Starpoints automatically convert to 36K rewards points
  • When programs merge in August, book mid tier hotels for 35K rewards points per night
  • If you have enough points, take advantage of 5th night free awards

Verdict: Bad Deal*

Why: Many mid tier properties are routinely available for under $300 per night, especially if you watch for sales.  If you buy Starpoints now with the hope of booking a mid tier property that is usually much more than $300, this can offer very good savings, but only if you don’t come across a better sale before your stay.

* This would be a good deal if you have specific plans to stay at a hotel that costs much more than $273 per night and if standard rooms are available during your travel dates.

Bottom Tier Hotel, 5 Nights for $227.50 ($45.50 per night)

a large building with a parking lot
TownePlace Suites Jacksonville NC. Currently a category 1 Marriott hotel

Currently, category 1 and 2 SPG hotels do not qualify for 5th Night Free awards.  But, when the Marriott and SPG programs merge in August, all hotels will be eligible for 5th Night Free awards.  And the lowest category hotels will be available for 7,500 points per night:

a chart with numbers and text

If you book 5 nights under the new award chart, you’ll pay 7,500 x 4 = 30,000 rewards points (10,000 Starpoints) for 5 nights.

  • Buy 10K Starpoints for $227.50
  • 10K Starpoints convert to 30K rewards points
  • Book 5 nights at a category 1 hotel for 30K points
    • Before August, this is only possible at category 1 Marriott hotels.
    • When the programs merge in August, this will be possible at category 1 SPG hotels as well
  • Average cost per night: $45.50

Verdict: Good Deal

Why: If you have a real need or desire to stay in a category 1 hotel for 5 nights, chances are good that the paid rate alternative will be quite a bit higher than $45.50 per night after taxes and fees.  Alternatively, for those chasing elite status, this is a fairly low cost way to earn 5 elite nights.

One-Way International First Class for $1,365

a woman serving a meal to another woman
Cathay Pacific first class

SPG offers point transfers to airline miles at a rate of 20K Starpoints to 25K miles.  If you buy enough Starpoints, you could use the resulting miles to buy first class flights:

  • Buy 60K Starpoints for $682.50 x 2 = $1,365 (See: How to buy more than 30K SPG points)
  • Convert 60K Starpoints to 75K airline miles
  • Many international first class awards are available for 75K miles one-way or less (see this post for examples)
  • Result: One-Way International First Class for $1,365 plus taxes & fees.

Verdict: Good Deal*

Why: A good international First Class flight often costs $8,000 or more round-trip.  Using points in this way would likely represent significant savings, even after accounting for fuel surcharges imposed by many carriers.  Caveat: Finding available first class awards when and where you want them can be tough.

* Even though this is a good deal, investing in travel packages can be a better deal.  See the section two below on round trip flights plus 7 night stays for details.

One-Way International Business Class for $1,365 (with points left over)

a seat and a monitor in an airplane
ANA Business Class
  • Buy 60K Starpoints for $682.50 x 2 = $1,365 (See: How to buy more than 30K SPG points)
  • Convert 60K Starpoints to 75K airline miles
  • Many international business class awards are available for 60K miles one-way or less (see this post for examples)
  • Result: One-Way International Business Class for $1,365 plus taxes & fees, with points left over for other uses

Verdict: Bad Deal

Why: It is often possible to find round-trip international business class fares for less than $3,000 (i.e. less than $1,500 each way).

Round Trip International Biz or 1st Class, plus 7 Night Hotel Stay for $2,047.50

a seat in a plane
Qantas Business Class

Marriott Travel Packages offer an intriguing alternative to using Starpoints directly:

  • Buy 90K Starpoints for $682.50 x 3 = $2,047.50 (See: How to buy more than 30K SPG points)
  • Convert 90K Starpoints to 270K Marriott Rewards points
  • Use 270K Marriott Rewards points to book a 7 night category 1-5 travel package resulting in 120K airline miles of various sorts, or 132K United miles plus a 7 night stay certificate.
  • Many round-trip international business class awards, and some round-trip international first class awards, are available for 120K miles or less. See this post for examples.
  • Result: Round-Trip premium international flight plus 7 night hotel stay for $2,047.50 plus taxes and fees.

Verdict: Great Deal

Why: While it’s possible to find similarly priced premium flights, this option gives you the option of flying some of the most luxurious premium cabins in the world.  For example, with Virgin Atlantic miles you could book ANA first class from the US to Tokyo for 110K or 120K miles.  Or, use Alaska miles to book Qantas or Fiji business class to Australia for 110K miles or Cathay Pacific for 120K miles.  Or, use Alaska miles to fly business class to Asia for 100K round-trip on Cathay Pacific or Hainan, or 120K round-trip on JAL.  United charges 140K round-trip (8K more than the miles you would get from the package) for partner business class to Europe, and less for their own flights.  And, significantly, United does not pass along fuel surcharges.  Caveat: Finding available business or first class awards when and where you want them can be tough.

If you need the miles, this deal is good even if you don’t have use for the 7 night stay certificate.  If you can find good use for the 7 night stay, then obviously the deal becomes way better.  For more about Marriott travel packages, see these posts:

Caveats to all of the above

#1: Whether or not something is a good or bad deal depends on your circumstances

I tried my best to indicate above whether or not I think each option is a good or bad deal, but your circumstances are undoubtedly different from those that I imagined.  Please use your own judgment to decide.

#2: Investing in points or miles is never a good idea without a plan for how to use them

Some of the flight options I described above sound amazing and are undoubtedly a great deal if you actually take advantage of them.  In reality, though, maybe you won’t.  If you’re thinking that you might try one of these award flights someday, but you don’t know when someday might be, I’d recommend against buying the points.  Chances are good that the miles will devalue before you go, or you might have other better options when the time comes.

#3 There are cheaper ways to get the needed points and miles

Buying points and miles at a discount is probably best for those who live outside of the US or for those who are unable to qualify for good credit card signup offers in the US.  For those in the US with good credit, a few credit card welcome bonuses could easily get you all of the points you need.

For example, here are the currently available Marriott point offers (click on any card link to go to a detailed Frequent Miler page about that card):

Card Offer
125K points ⓘ Non-Affiliate
Limited Time Offer: Earn 125,000 bonus points after spending $5,000 on eligible purchases within the first 3 months.
$95 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Recent better offer: 5 x 50K free night certificates after $5K in spend (expired 1/9/24)
60K points + Free Night Certificate ⓘ Friend-Referral
60K points + 50K free night certificate after $2K in the first 3 months. Terms apply.
No Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Recent better offer: 50K points after $1K in the first 3 months and 50K points after 6 eligible paid nights at Bonvoy hotels. (expired 8/9/23)
3 Free Night Awards, valued at up to 50K points each ⓘ Affiliate
Three 50k free night certificates after $6K spend in the first 6 months. Redemption level up to 50,000 Marriott Bonvoy(R) points for each bonus Free Night Award, at hotels participating in Marriott Bonvoy(R). Resort fees & terms apply. (Rates & Fees)
$125 Annual Fee
Recent better offer: 5x50K free night certificates after $8K in spend (expired 10/16/24)
85K points after $4K spend in 3 months
$250 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
85K Points ⓘ Affiliate
85K points after $5K spend in the first 6 months. Terms apply. (Rates & Fees)
$250 Annual Fee
Recent better offer: (Expired 10/2/24) 155K points after $5K spend in the first 6 months.
95K Points ⓘ Affiliate
95k points after $6K spend within the first 6 months. Terms apply. (Rates & Fees)
$650 Annual Fee
Recent better offer: (Expired 10/2/24) 185k points after $6K spend within the first 6 months.

And here are the top transferable points offers (press Next for more). Click on any card link to go to a detailed Frequent Miler page about that card:

Card Offer

And here are the top airline miles offers. Click on any card link to go to a detailed Frequent Miler page about that card:

Card Offer
60k miles ⓘ Affiliate
60K after $4K spend in first 6 months. Terms and limitations apply. (Rates & Fees)
$0 introductory annual fee for the first year, then $150
75K Miles ⓘ Affiliate
75K miles after $5K spend in first 3 months.
$0 introductory annual fee for the first year, then $99
After clicking through, be sure to click the link at the top that says, "Are you a small business owner?" to see the business card offers that include this card. You are not eligible for the bonus if you have received the bonus on this card within the past 24 months. Please note that the United EXPLORER Business card (no longer available) is a different product and does not affect your ability to get the bonus on this card.
75K miles after $5K spend in first 5 months
$0 introductory annual fee for the first year, then $99
Alternate Offer: There is an alternative offer of 30K + $400 credit that can be found when doing a dummy booking on aa.com.
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Up to 100K Points ⓘ Affiliate
75K points after $4K spend in the first 3 months and an additional 25K after spending a total fo $20K within first 12 months
$95 Annual Fee
This card is likely subject to Chase's 5/24 rule (click here for details).
Earn 100K Avios after $7.5K spend in 6 months
$95 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Recent better offer: Expired 7/4/22: 100K after $5K spend
Earn 100K Avios after $7.5K spend in 6 months
$95 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Recent better offer: Expired 7/4/22: 100K after $5K spend
Earn 100K Avios after $7.5K spend in 6 months
$95 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Recent better offer: Expired 7/4/22: 100K after $5K spend
80K points ⓘ Affiliate
80K points after $5K spend within first 3 months your account is open
$199 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
70K miles after one purchase within first 90 days. Use code 000150 for this offer
$99 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
70K miles after 1st purchase and paying the annual fee within 90 days
$99 Annual Fee
Recent better offer: Up to 75K: 60K miles after first purchase and 15K after adding an authorized user and making one purchase on that card [Expired 2/24/24]
Up to 65k miles ⓘ Non-Affiliate
60K miles after $3K spend in 3 months + 5k miles when adding authorized user
$0 introductory annual fee for the first year, then $95
This card is subject to Chase's 5/24 rule (click here for details).
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Recent better offer: Expired 8/11/22: 70K after $3K spend
70K miles + 40XP + 60XP ⓘ Non-Affiliate
70K miles + 40 XP after $3K in the first 90 days + 60 XP upon approval
$89 Annual Fee
Alternate Offer: Going through the steps to make a dummy booking at the Air France website may result in an offer that only gives 60K miles but also includes a $150 statement credit.
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
60K Points + $100 Voucher ⓘ Non-Affiliate
60K points plus $100 companion voucher after $1K spend in 90 days (enter any random five-digit number as "employee code")
$0 introductory annual fee for the first year, then $79
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
60K points ⓘ Affiliate
60K points after $3K spend within first 3 months your account is open
$99 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
60K miles + Companion Fare ⓘ Non-Affiliate
60k miles + Companion Fare ($99 fare + taxes) after $3K spend in 90 days
$95 Annual Fee
Alternate Offer: There are usually better in-flight offers available that require the name and id number of an Alaska employee.
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Up to 60K Miles ⓘ Non-Affiliate
Up to 60K miles: 50K bonus miles after spending $4K in first 90 days + additional 10K miles after a purchase is made on an employee card in the first 90 days
$99 Annual Fee
Up to 100K miles ⓘ Non-Affiliate
Up to 100K miles: Earn 60K bonus miles after $4.5K spend in first 90 days + 40K miles after $25K total spend in first 12 months
$249 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
50K points ⓘ Affiliate
50K points after $1K spend in the first 3 months.
$69 Annual Fee
After clicking through, be sure to manually select the exact Southwest card in which you are interested. This card is subject to Chase's 5/24 rule (click here for details).
50K miles after $2,500 spend in first 3 months
$0 introductory annual fee for the first year, then $99
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Recent better offer: 75K miles after $3,500 spend in 3 months (ended 10/14/24)
50K points after $1K spend in the first 3 months.
$99 Annual Fee
This card is known to be subject to Chase's 5/24 rule.
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
60K Miles + 500 PQPs ⓘ Affiliate
60K miles and 500 PQPs after $4K spend in the first 3 months
$250 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Limited time offer: earn 58K bonus miles after $2.5K in first 3 months
$79 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
50K miles ⓘ Affiliate
50K miles after $2K spend in first 6 months. Terms apply. (Rates & Fees)
$0 introductory annual fee for the first year, then $150
50K miles after $1K in spend in 90 days and payment of annual fee.
$99 Annual Fee
Note that the landing page prompts you to enter a mobile phone number to continue the application, but you can click "no thanks" to continue the application on your desktop device.
50K points ⓘ Affiliate
50K points after $1K spend in the first 3 months.
$149 Annual Fee
This card is known to be subject to Chase's 5/24 rule.
50K miles + Companion Fare ⓘ Non-Affiliate
50K miles + Companion Fare ($99 fare + taxes) after $3K spend in 3 months
$95 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Recent better offer: 70K after $4K in 3 months [Expired 4/23]
50K miles after $5K in 90 days
$95 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
50K miles after $500 in purchases in the first 90 days + instant Gold status with account opening & first purchae; maintain Gold status for 12 months with $3,000 in purchases within first 90 days
$0 introductory annual fee for the first year, then $99
80K Miles ⓘ Affiliate
80k miles after $5k spend in first 3 months
$525 Annual Fee
This card is available to you if you do not have any United Club card and have not received a new Cardmember bonus for any United Club card in the past 24 months.
Recent better offer: Expired 1/27/23: 100K after $5K spend
60K miles after $5K spend in 90 days
$450 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
70K miles ⓘ Affiliate
70K after $6K spend in first 6 months. Terms and limitations apply. (Rates & Fees)
$350 Annual Fee
Up to 50K Avios
30K Avios after first transaction, then an additional 20K after $3,000 spend within the first 90 days
$99 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Earn 40K bonus miles after $3K in first 90 days
$99 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
40K after $3K spend in 90 days + 2.5k for adding an authorised user (up to 4)
$99 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
40K miles after $4K spend in 90 days
$95 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
40K miles after $4K spend within 90 days of account opening
$99 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
75K miles after $7,500 spend in first 3 months
$595 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
20K Miles ⓘ Affiliate
20K miles after $1K spend in first 3 months
No Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Recent better offer: Expired 8/11/22: 30K after $1K spend
35K after $3K spend in 90 days
$95 Annual Fee
Note that some have received a targeted email offer for 65K miles after $5K spend in 90 days.
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
25K after $1K in first 90 days
$59 Annual Fee
Alternate Offer: You may be targeted for an offer including a $100 statement credit during a dummy booking.
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
Up to 70K Avios + 150 Qpoints ⓘ Non-Affiliate
45K Avios after first transaction, then an additional 25K and 150 Qpoints after $5,000 spend within the first 90 days
$499 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
80K miles ⓘ Affiliate
80k after $10K spend in first 6 months. Terms apply. (Rates & Fees)
$650 Annual Fee
25K points after $1,500 spend in the first 3 billing cycles
$69 Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
50K Miles + 1,000 PQP ⓘ Non-Affiliate
50K miles + 1,000 Premier Qualifying Points after $5K spend in first 3 months.
$450 Annual Fee
This card is subject to Chase's 5/24 rule (click here for details).
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
70K Miles ⓘ Affiliate
Earn 70K miles after $5K spend in first 6 months. Terms apply. (Rates & Fees)
$650 Annual Fee
10K points after $1K spend in 90 days.
No Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
10K after $500 spend in 90 days
No Annual Fee
Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.
10K miles ⓘ Affiliate
10K miles after $1000 spend in the first 6 months. Terms apply. (Rates & Fees)
No Annual Fee
Note an unusual restriction: Welcome bonus not available if you've had another Delta consumer card in the past 90 days.
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[…] Is it really worth buying these points? In the post “Should you invest in Starpoints now?” I argued that the answer depends on how you’ll use the points. For some purposes, it […]

Al_R

Quality post. Thanks Greg.

PSL

Deciding whether to purchase points is for many of us contingent on Marriott actually publishing the new travel package rates by July 20. I’m not taking any bets on that one.

Jeffrey@MillionMileGuy

This post took some time and thought. Nice post Greg, you do a great job.

DSK

Great meeting you at FTU in NYC. Wanted to make sure you saw latest merger news which appears to answer a key question about LTPP in 2018 differently than you (and most others) surmised. From the wiki thread–“Starwood Lurker” is SPG’s social media specialist:

B8. Do Marriott members with 2MM uncombined lifetime MR points and with 750 combined lifetime MR nights and lifetime SPG nights qualify for LTPP?

Yes.This is confirmed at marriott.members.com under the Benefits and Lifetime tab where it specifically states, “You can also qualify for Lifetime status via the existing criteria for Rewards and SPG through December 31, 2018.” Existing legacy criteria for earning Lifetime Platinum Premier in MR/RCR is 750 Lifetime nights + 2MM Lifetime points. Also, in August, when members combine Rewards and SPG accounts, their lifetime nights across both programs count toward Lifetime Elite status in the new combined program. To be included in at previous thresholds for Rewards or SPG, members will have until December 31, 2018, to complete stays in order to achieve the Lifetime Elite status.

GradCashGrab

Have they clarified if Starpoints sitting in your SPG account will become part of Marriott Lifetime points?

Nicholas

I purchased SPG points at the tail end of the last sale because I saw a good redemption opportunity coming up and knew I’d get a good value out of them. Yesterday, I finalized flight arrangements and used the points to book 3 rooms for 3 nights at the Sheraton Miraflores in Lima, Peru for 33,000 points next May. The cash cost for all 3 rooms for 3 nights would have been $2,100+ after taxes, so I feel like I secured good value with the booking.