Hotel Cards

Just as hotel programs are often considered also-rans to the airline programs, so too do the hotel programs' cards get less respect than the airlines'.

As a result of their Rodney Dangerfield-like status, they have to try harder. Which can be good news for consumers.

First up in the "good news" category is annual fees: Hilton, Priority Club (for stays at Bass Hotels & Resorts, including Crowne Plaza, Holiday Inn, Inter-Continental, Staybridge Suites) and Ramada don't have them; and Marriott waives its modest $30 fee for the first year. And while annual percentage rates (APR's) for Hilton and Marriott cards are high at 18%-plus, Priority Club and Ramada cards come in under 15%. (See the Hotel Card Comparison for more.)

When it comes to the overall value proposition, however, hotel cards don't fare as well, especially if the goal is to earn airline miles. Let's take Hilton's card as an example...

Hilton cardholders earn 3 HHonors points for every dollar charged at Hilton hotels, and 2 HHonors points per dollar for other charges. HHonors points can be converted into airline miles in many programs, usually at the rate of 5 HHonors points for 1 airline mile. So assuming you converted your Hilton credit card points into airline miles, you would earn .6 or .4 miles for every dollar in charges. That's only 40% - 60% of the mileage-earning rate of the airline cards. Again, assuming the desired payout is in airline miles.

On the other hand, if your goal is to earn free hotel stays rather than free flights, the value picture improves.

Again using Hilton's program as an example, a free weekend hotel night at a lower-priced Hilton (an Opportunity hotel, in the HHonors classification system) is offered for 10,000 HHonors points. Assuming you earn your points a the 1:3 ratio in effect for hotel charges, you would have to spend $3,333 to generate the required 10,000 points. If the value of an Opportunity-class room is $100, the award would amount to a 3% rebate. And that's significantly better than the 1-2% rebate represented by the $1-earns-1-mile formula used by the airline cards.

Hotel Cards Compared