The best hotel credit card ever

What is the best hotel credit card there has ever been? If you’d say the old SPG card, I’d have been with you until the early hours this morning. If you’d have said the Hilton Aspire to me yesterday, I might not have argued with you much. And if you’re ready to call me a soulless shill for the credit card companies when I tell you that it is neither of those cards, just do us both a favor and read it through — because I wouldn’t have believed it if you’d told me yesterday that Capital One Reward miles make the Venture and Spark Miles cards potentially the best hotel cards that have ever been. It’s OK if you don’t believe me from the get-go. I think you might if you run the numbers.

Stumbling upon something awesome

When working on this morning’s complete guide to Capital One Rewards miles, I stumbled on something amazing in one of my Capital One accounts that I’ll argue is a total game-changer: some account holders can redeem 64,250 Capital One Rewards miles for a $900 gift card to Marriott, Ritz-Carlton, Fairmont, Raffles, or Four Seasons. If that doesn’t yet sound amazing, I think it will with some analysis.

The mysterious Hotel Special Offers option

I have a Capital One Venture One account (the card that only earns 1.25 Capital One Rewards miles per dollar) that has been open for years. It has no annual fee, so I’ve kept it despite not using it much. My wife also has a Venture One card and additionally has a Venture Rewards card (what can I say? We were all-in on the Capital One ecosystem before we learned about all of the other valuable options on the market). Capital One has been good about waiving the fee on her Venture card, so we haven’t bothered to close it.

When I was taking screen shots for yesterday’s posts on how to transfer Capital One Rewards miles to airlines and how to share them with other people, I noticed that my account seemed to have one more option than my wife’s, but I didn’t go back to see what it was until early this morning. That’s when I noticed that in addition to “Cover Your Travel Purchases”, “Transfer Your Rewards”, “Book a Trip”, “Get Gift Cards”, etc — I had an additional option, “Get Special Hotel Offers”. My wife’s account doesn’t have this option.

After making the discoveries to follow, I searched the Internet for more information about why this option was available on my account. I can’t figure it out. I’ve found a couple of datapoints from Reddit in 2017 (one with comments indicating this has existed since perhaps as far back as 2011). See this one and this one. I couldn’t find much beyond those. Interestingly, the only data points I see are from Venture One cardholders. That’s the crummy fee-free version I have. My wife has both that version and the Venture Rewards card that earns 2 Capital One Rewards miles per dollar and she does not see this option on either of her cards. I don’t know if this is something that is only available to those who only have the Venture One card, if it’s something targeted, if it’s something old that only long-term cardholders will see, if the availability comes and goes or stays forever, etc (if any readers have more experience with this, please share your data in the comments). What I do know is that thanks to the ability to move Capital One Rewards miles to anyone else with an card account that earns Rewards miles, you only need to know one person in your social circle who has this capability as you could easily transfer your points to that friend or family member and have them redeem for you. Will the option disappear after you’ve redeemed once? I have no idea.

What are the Hotel Special Offers and why are they awesome?

Clicking the above took me to a page that showed five options: a $900 gift card to Fairmont Hotels & Resorts, Four Seasons Hotels and Resorts, MarriottRaffles hotel, or The Ritz-Carlton.

I initially laughed to myself thinking that there is already a separate section on Capital One to redeem for gift cards…but then I saw the price on these gift cards. As shown above and below here, it’s 64,250 Capital One Rewards miles for a $900 gift card (all five cards cost the same number of Rewards miles).

Normally, 64,250 Capital One Rewards miles would be worth $642.50 when applied towards travel. That is to say that if you booked a Marriott hotel and paid with your Capital One Rewards miles-earning credit card, you could redeem miles at a value of $0.01 each toward the bill and get $642.50 towards your stay.

These $900 gift cards are offering an additional $257.50 in value. That makes your Capital One Rewards miles worth 1.4 cents each towards these $900 gift cards.

That, in turn, is amazing because the Capital One Venture card and Capital One Spark Miles card each earn 2 Rewards miles per dollar spent — an effective return of 2.8% towards stays at your choice of one of those five brands when you redeem in increments of 64,250 points.

Alternatively, you could sell the gift card. Let’s say you redeemed for the $900 Marriott gift card. The current public resale rates for Marriott Gift Cards are around 85% of face value. That makes the $900 gift card theoretically worth about $765. That’s assuming that a resale site would buy such a large gift card, but if they do that means $765 cash in your pocket in exchange for your 64,250 Rewards miles — a value of 1.19 cents per mile. Since the Venture and Spark Miles cards each earn 2 Capital One miles per dollar, your total return is 2.38%.

The “catch” is that earning enough points for this redemption would ordinarily require $32,125 in everyday spend (assuming we’re not including any welcome bonuses), so it’s not nearly as straightforward as a cash back card. That said, I’m sure there are readers who used to spend at least that much annually on an SPG card. And as we work through the math, I think it might be worth making a Capital One miles card the daily-driver-for-unbonused-spend card that SPG once was.  On $32,125 spent (in order to earn the 64,250 Rewards miles required for this gift card redemption), your return is 2.38%, and that is cash assuming you sold the gift card. While the gift card redemption-and-resale angle still wouldn’t make it the flat-out most rewarding card for everyday spend on its own, that’s still very competitive.

How does that compare to the “old” SPG card earning rate?

By comparison, the SPG card used to earn the equivalent of 3 Marriott Rewards points per dollar spent. Since our Reasonable Redemption Value for Marriott points is 0.72 cents, our value for Starpoints was 2.16 cents per point before the Marriott merger since each Starpoint could be converted to 3 Marriott Rewards points pre-merger. That is to say that each Starpoint earned before the merger would buy you about 2.16 cents towards a Marriott stay (remember that today, the SPG card earns 2 “points” per dollar, which are really Marriott Rewards points — a lesser earn ratio than before).

Capital One is offering significantly more value if you can redeem for those $900 gift cards — a value of 2.8 cents towards Marriott stays is 30% more than the old Starpoint valuation of 2.16 cents.

And it gets better.

A major difference between using Starpoints to book a hotel room versus using a Marriott gift card is that you will earn rewards points when paying with a gift card. A general member with no Marriott status earns 10 points per dollar spent. At a value of 0.72 cents per Marriott point, with no status you’ll earn about another 7.2% back. The water gets muddy here because you’ll earn those points on room rate and incidentals, but not on tax. How much of the $900 gift card will go towards tax and not earn points? I don’t know. Let’s conservatively say that you pay, on average, 20% in taxes and fees that don’t earn Marriott points.  That means you’ll earn 10 points per dollar on $750 in spend from your gift card — 7,500 Marriott points. That’s before any hotel promotions, the 50% bonus for Platinum status members, etc — one might reasonably expect that you could pull together a couple/few thousand more Marriott points by taking advantage of various promotions. Even if we ignore the chance at earning promotional points for that $750 in stays, you’ll have earned about $54 worth of points (7500 * $0.0072 per point). Keep in mind that’s enough points for a free Category 1 Marriott night.

Furthermore, you should be able to book your Marriott gift card stays through a shopping portal and earn an additional return there. We’ve recently seen shopping portal payouts as high as 12% for Marriott stays. If you were able to earn 12% back on those $750 in room rates paid, that’s another $90 cash back.

When all is said an done, you’ll have spent $32,125 on a Capital One Venture or Spark Miles card and earned:

  • A $900 Marriott gift card
  • $90 in cash back from using that GC
  • At least 7500 in Marriott points (~$54)

That’s a total value in the ballpark of $1,044 on $32,125 in spend — a total return of around 3.25%. Let’s be clear: I am not saying that the Capital One cards earn the equivalent of 3.25% back. They don’t: first of all, you probably don’t value a Marriott gift card at its full face value. Second, trying to value the return on a card based on stuff like how much portal cash back you can get when redeeming your rewards is like valuing your bank account by an additional 10% because you could spend all of your money at Macy’s today and get 10% cash back through a shopping portal. Let’s not get silly.

However, it’s essential to take the bigger picture into account when comparing the Venture and Spark Miles cards to a traditional hotel card like the SPG card. Redeeming traditional hotel points will not earn an additional return in terms of shopping portal cash back, points earned for stays, etc. In my opinion, the return on these Capital One “miles” cards becomes stronger by an order of magnitude in this regard than the return on the old SPG card since you do have the ability to grow your savings even further than the 2.8% towards paid Marriott stays that you’ll get when redeeming for a $900 gift card.

Of course, there are opportunities to get far outsized value out of hotel points that you just can’t get with fixed-value points — 2.16 cents was a “reasonable” benchmark for SPG points to make it easier to understand when it made more sense to use cash and when it made more sense to use points. If you used your points for a hotel in Times Square at New Year’s Eve or for a resort in the Maldives, for example, you could easily get a lot more “value” out of the points in comparison to cash prices. You won’t be booking those off-the-charts redemptions with Capital One Rewards miles. That’s the heart of the argument in favor of the SPG card being more valuable — the ability to get those crazy redemptions. If the majority of your hotel redemptions are for those types of hotel stays where you were getting far beyond 2.8 cents per point in value, I can understand if you hold tight to the SPG card from days of yore.

Flexibility has intangible value

However, if you’ve been just disillusioned enough with Marriott thanks to how disastrously the merger has gone thus far as to consider staying at other brands, the Capital One cards gain some real luster. Even at the 2.8% return-towards-$900-gift-cards rate, you’ve got your choice between Marriott and Fairmont, Four Seasons and Raffles (Ritz-Carlton isn’t really a separate choice per se). You’re not going to find many mid-range hotels options outside of Marriott there, but those who normally pay for stays at Four Seasons, Fairmont, and Raffles might find the return on the Capital One miles cards to be the best bang for their buck. That was as surprising a sentence to write as it is to read.

And alternatively, selling the gift cards for cash and using that to pay for stays at other chains yields the 2.38% back number thrown out above — which isn’t quite as good as the Bank of America Premium Rewards card with Platinum Honors or the ongoing return on the Alliant Cashback Visa, but it’s pretty good for a long-term earn rate — albeit hinging on the ability to redeem for these $900 gift cards at a preferential rate. Will that option remain in perpetuity? It’s anyone’s guess and there is certainly some gamble in collecting Capital One Rewards miles in the hopes that it does remain. That said, there is some gamble in collecting any rewards currency since devaluations can happen without notice.

Furthermore, if you’re a hotel free agent, the return on the Venture Rewards card becomes outstanding when booking through hotels.com/venture. That’s because Capital One offers 10x Capital One miles when using your Venture card and booking through the Hotels.com portal (via that specific link). That’s a great value. Suddenly, earning 64,250 points requires just $6,425 in hotel spend — yielding the same $900 gift card (and potential for $90 in portal cash back when you use it), Marriott points earned on stays, etc. That’s a phenomenal return for ongoing spend in a bonus category. Even if you redeem for the $900 Marriott card and sell it for $750 cash, you’ll have earned 11.67% cash back on your Hotels.com bookings. If you value one of those $900 gift cards more highly and/or you start to consider the value of stacking with portal cash back, rewards points earned for stays paid with the gift cards, Welcome Rewards earned through Hotels.com — the total return becomes really strong in my opinion.

In fact, here’s how your bookings might break down:

  • $6,425 in bookings through Hotels.com earns 64,250 Capital One Venture Rewards miles when booked through hotels.com/venture
  • 64,250 Venture Rewards miles = $900 hotel gift card (for the select hotels as shown above)
  • Earn Welcome Rewards on your Hotels.com bookings (you earn 1 free night after 10 paid nights worth the average cost of those 10 nights — essentially 10% back in the form of Hotels.com credit every time you hit 10 nights. This will be on the rate you paid before tax, so it won’t be 10% of $6,425….but it’ll be at least $500)
  • Use your $900 hotel gift card through a portal to book stays
  • Earn loyalty points on those stays if you choose Marriott or Ritz gift cards

In the end, that’s a heck of a stack for a hotel credit card.

On the other hand, paying with your Venture card you would forgo the opportunity to buy discounted Hotels.com gift cards for a large savings. You can often get Hotels.com gift cards for about 20% off the face value either directly via sales at various stores or indirectly via Amex Offers at stores that sell them, etc. If you regularly use that method to save on Hotels.com bookings, you might be happy enough with that not to be enticed by the Venture angle. On the other hand, if you don’t collect / keep track of gift cards well, this is a pretty awesome alternative.

No real “premium” benefits

If the Capital One miles cards lose out to the old SPG card in terms of aspirational redemptions, they lag far behind a card like the Hilton Aspire card in terms of ancillary benefits. The Aspire card comes with Hilton Diamond status, an annual $250 airline incidentals credit, an annual $250 Hilton resort credit, and more. The Capital One cards don’t come with any of those sort of benefits. Sure, they added a Global Entry or TSA PreCheck credit to the Venture Rewards card, but that’s about it. No Priority Pass, no elite status…on the other hand, no $450 annual fee, either (the fee is waived in year #1 on both the Venture and Spark Miles cards and $95 thereafter).

Don’t get me wrong: I love the Hilton Aspire card; I think it’s annual benefits far outweigh its annual fee. But it’s not terribly rewarding for ongoing spend, awarding just 3 Hilton points per dollar on everyday purchases. Even its bonus categories don’t come close to matching the Venture card’s return on Hotels.com spend.

But if you’re looking for premium benefits, you wouldn’t get excited about the Venture / Spark Miles cards as your hotel cards of choice. Whether you’re #TeamVentureSpark or #TeamAspire likely comes down to whether you’re more interested in rewards for ongoing spend or perks for being a cardholder.

Earn more miles with Capital One Venture or Spark Miles

One of the things most-loved about the old SPG card was the fact that you could use the SPG card to effectively earn airline miles at a rate of 1.25 airline miles per dollar spent. This is not true today, but before the Marriott merger you could transfer 1:1 to many airlines and get a 5K airline mile bonus when you transferred 20K Starpoints. In other words, if you spent in increments of $20K, you would earn 25K airline miles in the past (this is no longer true).

Capital One offers a better return — albeit with far far far far far far far far far fewer airline partners. That’s because the Capital One Venture and Spark Miles cards earn 2 Capital One Rewards miles per dollar spent and you can then transfer to most of the airline partners at a rate of 2 Capital One Rewards miles to 1.5 airline miles (the ratio is worse for Emirates and Singapore). That means that for most airline partners, you’re earning the equivalent of 1.5 airline miles per dollar spent on a Capital One Venture or Spark Miles cards — 20% more than the earning ratio on the old SPG card. That same $20K in purchases would yield you 30K airline miles with most of Capital One’s partners. Again, the major difference here is the fact that Capital One only has just over a dozen airline partners and is missing many of SPG’s most useful partners. Still, Capital One says that they plan to expand on the partnerships and indeed they already added two more than originally announced (though at the lower ratio of 2:1).

So while it’s true that the Capital One card earns more airline miles per dollar, it has a long way to go to catch up with the transfer partners we all enjoyed with SPG. Still, I’ll hold out some hope on that. And the value here is that you can choose between airline miles or gift cards or travel statement credits. Capital One is weak in breadth of transfer partners but strong in flexibility.

Visa is more widely accepted

Speaking of breadth, Visa is obviously more broadly accepted than Amex. These days, I don’t run into many instances in the US where I can’t use my American Express cards, but it does happen now and then. Overseas, Visa is certainly more widely accepted. That adds another small feather to Capital One’s cap over the old SPG and current Aspire cards.

Welcome bonuses are more valuable than they seemed before

Certainly one thing that popped into mind immediately was the fact that the welcome bonuses on the Venture and Spark Miles cards are a lot more exciting to me now than before considering the ability to redeem 64,250 Rewards miles for a $900 hotel gift card. The Venture card recently had a welcome offer of 75,000 Rewards miles (since expired and replaced with a 50K offer). At 75K, the welcome offer alone could bring in a $900 gift card and leave you with more than $100 worth of Rewards miles left over. That would be a terrific bonus if you would have otherwise used the points for hotel stays.

The current big offer on the Spark Miles card is also quite intriguing. That welcome bonus has two parts: get 50K Rewards miles after $5K spend in the first 3 months and an additional 150K Rewards miles after $50K spend in the first 6 months. Assuming you hit both bonuses, you’d end up with a total of 300K Rewards miles (200K from the bonuses and 100K from spending $50K). If you had the hotel special offers available, you could redeem that for four $900 gift cards — $3600 towards hotels — and still have 43K Rewards miles left (worth at least $430 towards travel). That’s a total return of around $4K on $50K spend. Of course you could do a lot better by splitting that $50K spend over multiple cards to earn multiple welcome bonuses, but if you’re a business owner with high expenses where that $50K in purchases won’t come at the expensive of going after other welcome bonuses, that looks like an awesome return.

Bottom line

The moves to add airline transfer partners and to allow people to share miles with others made Capital One much more of a player in the rewards card market than they ever had been before. However, if this capability to use your Rewards miles for 1.4 cents each towards certain hotel gift cards is widespread and continues (and especially if a chain with the footprint and range of brands of Marriott continues to be an option for this), I think the Venture Rewards card in particular would become my go-to hotel card recommendation in terms of one for everyday spend. And in fact, I had already rotated the Venture card back into our wallets and now look forward to getting out and exercising it over the weekend as we’ve got some work to do to get to 64K Rewards miles. If you had told me in January 2018 that I would hang up my SPG card and be excitedly using my Venture Rewards card by the end of the year, I never would have believed you. I still can’t really believe it. But between the fact that I know my floor redemption is no worse than a 2% cash back card and I now have the additional options to transfer to partners, move the points between my wife and I, and possibly get really surprising value towards Marriott stays, I’m digging these Rewards miles.

I guess the big question mark that makes all the difference in the world is: who has the ability to redeem for these gift cards and is there any logic to it? The only guess I’ve got is that maybe it is only available to people who only have the Venture One card? Anyone else out there seeing the hotel special offers?

About Nick Reyes

Nick Reyes is a (fairly) regular guy with an animalistic passion for maximizing the value of miles and money to travel the world in comfort and style. There is little in life that he loves more than finding a fantastic deal and helping you shop smarter & harder to achieve your travel dreams.

More articles by Nick Reyes »

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Kimochi
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Kimochi

So, is the hotel $900 redemption better, or transfer to airlines miles 2:1.5 better?

Zac Hood
Guest
Zac Hood

I was so pumped reading this just 2 minutes after booking a Marriott stay and needing some Marriott money for dining. Then I realized I had the regular Venture card and it’s not showing up! That’s an amazing find.

PJ Yoo
Guest
PJ Yoo

Just a note on redeeming a Marriott gift card…I was at a legacy SPG property located in the USA over Thanksgiving weekend and they could not accept my Marriott gift card. Claimed that they wouldn’t be able to… even years down the road. Seems weird but I was there when front desk agent spoke with their finance guy in the back office and heard him communicate that info.

iahphx
Guest
iahphx

Yes, this can be frustrating. A few years ago, Marriott bought the Protea hotel chain in Africa, and the brand is now called “Protea by Marriott.” I was staying on points at their Kruger Park Gate location in South Africa earlier this year, and thought it would be a great time to use up my discounted Marriott gift card (the hotel is isolated so there are basically no other dining options; fortunately restaurant prices are reasonable). No luck. Despite owning the brand for years, and rebranding it “Marriott,” the company hasn’t bothered to figure out a way to let guests pay with their gift cards there. On the other hand, I recently was successful in using my gift card at a Renaissance hotel in Asia. Is that because they’ve owned that brand for even longer? Bizarre.

PJ Yoo
Guest
PJ Yoo

Hmmm, wondering if I keep my Capital One Venture Card and see if the wife can “downgrade” hers to the Capital One Venture One card

Sam
Guest
Sam

This will matter to me once I know that the $900 on hotel gift cards deal will be reliably available.

John
Guest
John

My mother has the VentureOne card as well (and that’s the ONLY card she has from CapOne) and she has this offer on her account too. It looks like it only shows up if you have JUST that card. Now if only I had enough points to buy one of these!

Theo
Guest
Theo

Wonderful find. How do I get approved for a Spark or Venture card. I’ve had seemingly pre-approved offers get denied. Cap One is much hard to get approved on than even a few years ago. I’ve got a credit score hovering around 825, mid-high income and I’m 10/24. I’ve got a Cap One visa 15 years old I still use, a Cap One savings that is substantial.

HoKo
Guest
HoKo

What’s the interest rate on the Cap1 savings? Why are you bothering to leave cash there?

Theo
Guest
Theo

2.1%, special offer.

Doug
Guest
Doug

i have a very old Spark Visa Signature Business (i believe it was converted to this card type from another name automatically) under one login that has no annual fee and earns 1.5 miles per dollar and the hotel offers appear. i redeemed the same offer for Marriott gift cards several years ago. Definitely the best use of the points back then.

i also have another Spark Visa Signature Business under a different login (the new one with the 200K signup bonus) that offers 2 miles per dollar and a $95 annual fee. The new card doesn’t have the hotel offers. but yes, i can transfer these miles to the other card to redeem the offers.

Jim
Guest
Jim

Interesting article, but I’d say it’s not close to the best hotel card ever. In my mind that was the Club Carlson card with second night free benefits on two-night stays. Used that for quite a while to save literally thousands every year.

Billy Bob
Guest
Billy Bob

Except that’s dead now.

HoKo
Guest
HoKo

Would be nice if readers with the no-AF card could provide data-points regarding availability of this offer on their accounts

Sam Palmer
Guest
Sam Palmer

My wife has the Spark for Business AND the crappy 1.25 venture one. She DOES have the $900 gift card opportunity!!!

Hin
Guest
Hin

The best hotel credit card is still the OLD IHG card. Even going forward $49 for for a hotel room potentially costing several hundred dollars every year is better than having to put a big spend on a card. A $32K spend can fulfill a whole lot of sign up bonuses which would net a lot more than $900.

JSEA
Guest
JSEA

I have a Venture One card that was downgraded from a Venture card earlier this year before the AF hit. That is my only Capital One card. It’s a couple of years old.

No “Special Hotel Offers”.

David
Guest
David

Years ago when the venture card came out they had a similar deal on Hyatt gift cards. I think there was a 100k sign up bonus and you could parlay that into two $900 gift cards after meeting min spend. Later it went up to something like what you are describing now do you had to do a bit of spend to get the 2nd gift card. This was one of those desks that everybody jumped on due to the amazing value of the sign up bonus.

Really nice to see the hotel gift cards are back on n some form.

My really old venture card doesn’t have hotel offers

-David

james
Guest
james

Old timers (from 2011) remember the short-lived $900 Hyatt check certificate offer for 51,250 “miles” right after a 100k Venture sign-up bonus for those who could stomach the 3-agency pull…and Capital One’s famously bad customer service.

james
Guest
james

reminds me of Julian’s “devils advocate” posts

Billy Bob
Guest
Billy Bob

I have the Venture One card and the GM card. I’ve had the former for 10+ years. I use it very occasionally (i.e., life-support type of use).
No special offers for me.

trackback

[…] so you’ll want to check the exclusion list before you book. We recently wrote about how some Capital One cardholders can redeem 64,250 points for a $900 Marriott gift card. Stacking that gift card with an offer for 12% cash back would make for a nice way to stretch your […]