IHG One Rewards Devaluation
Early this year, I took advantage of some then-current options to cheaply obtain top-tier IHG Diamond status. Still feeling the mojo after I obtained it, we did the same for my wife. Not coincidentally, we’ve broadened our relationship well beyond our Holiday Inn Express redemptions, primarily at Kimpton properties. Things had been going swimmingly, until yet another IHG devaluation appeared, of course. Indeed, it seems whenever an algorithm is introduced in our hobby, travelers largely end up the losers. But my family and I hadn’t been affected in the last couple months since this development, though. We didn’t plan any IHG redemptions, last-minute or long-term. But a few days ago, the IHG One Rewards devaluation started hitting home more. Here’s my recent discovery and how this underscores an even bigger problem for IHG loyalists.
An Aspirational Stay, Maybe?
As I decided to focus more on the IHG program in late 2023 and early 2024, I came across the upcoming Regent Santa Monica Beach. I’ve been intrigued by an aspirational stay there ever since, and the property has begun accepting reservations for its planned opening this month. Curious how much reward nights would price out, I picked a random weeknight in mid May; 176k points for a generously-sized 720 square foot room at the impeccably-located property. I checked my dates, thinking I’d accidentally selected two nights. Nope, the property priced out at 176k points for one night. I decided to take two children off the search, opting just for two adults – same price. Cash rates on that same night start at $904 before taxes. That’s before the $90 “amenity fee,” applicable whether one books with points or cash. (This fee includes a daily $50 resort credit, but still…) That cash rate turns out to be $1,155.99 all-in.
I hopped around the calendar looking at various single nights for award stays. The Saturday following the above mid May weeknight was 195k. I saw a rate as low as 160k nightly, but that appeared to be an anomaly. Overall, nightly rates seemed closer to 200k than 100k nightly. A random weeknight in late June came in at 301k; the following Saturday night was 325k. I’d seen enough.
Yeah, No
I previously theorized the property would cost a pretty point, maybe in the mid-100k range nightly. Perhaps I’d find a “deal” closer to 100k nightly. Not even close. Gone were my hopes of stacking a fourth-night free stay with our Diamond benefits. We aren’t hoarding enough IHG currency to pay for such a visit. But even if we were, we’d probably opt out, anyway. That’s what I’m getting into next.
Kimpton The Forum, Charlottesville.More Sane Options
We’re deciding to focus these IHG points on other brands, such as Intercontinental, Hotel Indigo, and Kimpton. Of course, we expect to feel the devaluation a bit here, but perhaps not so harshly as the Regent. And my cursory searches reflect we won’t feel any major devaluation pain at Holiday Inn and Express properties, where our family historically redeemed most.
It’s important to note that with other programs, my family and I have been able to have it all – from memorable award redemptions at the most aspirational properties to everyday value at limited-service properties. This just isn’t the case for us with IHG, and that’s even more obvious now.
An Unrewarding Task
So why can’t we have it all with IHG? More appropriately, we shouldn’t strive to have it all. This leads me to my next topic. One of the least-rewarding chores in our hobby is building up an IHG points balance.
Transferring into IHG
Let’s start with the approximate value of IHG points. I don’t overly focus on point values, knowing my goals take precedent. But I don’t ignore the numbers, either. MtM has historically considered IHG points to be worth 0.58 cents each, on average. Transferring Chase points to IHG makes zero sense/cents – to cashout fans like me, but most everyone else, too. That’s because Ultimate Rewards are worth a penny each, at a minimum, for cash back directly with Chase. (Maybe some can justify a small transfer to top off for an IHG redemption.) Otherwise, most everyone is better off cashing out Ultimate Rewards and booking a paid rate, even when there’s a transfer bonus to IHG currency.
Earning via Credit Cards
But what about stocking up via a cobranded credit card? That ain’t pretty, either. Beyond spend at their own hotels, the IHG Premier earns 5x in travel, dining, and gas categories, and 3x everywhere else. Taking into account the average point value, one can do better in the 5x categories with a variety of other cards. Any 2% cash back credit card easily bests the Premier’s 3x category. Some can justify big spend via a new card welcome offer or big spend bonuses (I did, particularly with some time-sensitive spend options). But overall, savvy consumers are discouraged from significantly earning via IHG Premier spend. That’s pretty much the same story with the business card version, as well.
Terrible Together
It’s important to note that the cent per point value of a Regent Santa Monica Beach stay on that mid May date isn’t far off the MtM average. But in my experience, most hotel loyalty programs offer substantially higher cpp value at their top properties. Not really at IHG, it seems. IHG’s exorbitantly-high redemption rates in combination with inferior earning options should lead many to justifiably ignore the program and its properties.
IHG One Rewards Devaluation – Conclusion
I’ve come and gone with IHG before. Time will tell if I do so again. I’m still cautiously optimistic of obtaining solid redemptions (and some excellent breakfasts) while a Diamond elite. Right now, I have no plans to requalify for 2026, but I’d love IHG to give me a reason to do so. I’m only earning IHG points these days through limited-time spend bonuses like 7x at dining and grocery stores (up to $1k), but those insignificant opportunities don’t create much optimism. Meanwhile, I’ll continue to enjoy IHG redemptions from the low- to high-end, but probably not the highest.
How are you feeling about the recent IHG One Rewards devaluation?
The post IHGeez! The One Rewards Program Devaluation Is Terrifyingly Real appeared first on Miles to Memories.
