Reader Question: Use SPG Starpoints Now Or Wait For The Conversion And New Award Charts?

My reader sent me a question by email that must be in the minds of many SPG members; whether they should be using their Starpoints now or wait for the SPG/Marriott conversion coming in August.

Here’s the email from the reader:

I have about 300K SPG points. A category 6 hotel is now costing around 20K points per night. With the 3-1 point conversion, I’m worried it’s gonna dilute the value of my points after August. Do you know how many points/night a category 6 will cost after the transfer? I’m wondering if I should use my points now to book or wait till after August when the conversion happens. Would appreciate your thoughts.

SPG Starpoints are converted to new Rewards point in August at 1:3 ratio and the reader will end up with roughly 900,000 points.

Marriott/SPG made an announcement and issued examples earlier this week about roughly where 100 hotels will be in their new award charts come this August.

The good news for the reader is that Marriott’s highest award category this fall will be category 7 that will require 60,000 points (20,000 SPG in their current form). Category 8 and off and on peak awards will be introduced in 2019.

Reader will likely benefit in the short-term if he prefers to redeem at the high-end SPG properties when there is no higher than category 7 and peak awards are not yet in place.

Here are the examples that Marriott released:

Conclusion

I believe that this new award chart will create short-term opportunities for those that prefer to redeem at high-end SPG properties that otherwise would be at category 8 especially during high season when they would be at PEAK (and up to 100,000 points instead of the category 7 standard at 60,000).

In the long-term, however, I believe that this is a devaluation. More properties where people redeem will increase in number of points required (especially Marriott ones that previously have had their rewards rate capped at 45K per night).