Maximizing Travel Rewards: Should You Pay Cash or Use Hilton Points at Conrad Koh Samui?

Recently, a client of mine faced this exact question while planning a stay at the  Conrad Koh Samui 🏝️, one of Hilton’s most luxurious properties in Thailand. Their options:

1. 💎 Redeem 95,000 Hilton Honors points (transferred from 42,200 Amex Membership Reward Points during a 125% transfer bonus to Hilton).
2. 💰 Pay $849 in cash for the same night.

At first glance, using 42,200 Amex Membership Reward Points instead of paying $849 sounds like an easy win, right? Not so fast. Let's break down the analysis and why I ultimately recommended paying cash instead of using points.

📊 Understanding the Redemption Value: Hilton vs. Amex Points

Before making a decision, it’s crucial to evaluate the actual value of points. Here’s how these numbers break down:

• 🏨 Hilton Honors Points Value: Hilton points are typically worth around 0.4 to 0.5 cents per point on average. At 95,000 points, that would imply a value of $380 - $475.
• 📈 Actual Redemption Value for This Booking: $849 cash cost ÷ 95,000 points = 0.89 cents per point, which is above-average value for Hilton points.
• 💳 Amex Membership Reward Points Value: Amex points are generally more valuable, often worth around 1.8 to 2.2 cents per point when used wisely (such as transferring to airlines for premium flight redemptions).
• 📉 Value of 42,200 Amex Points in Hilton Transfer: Since 42,200 Amex points convert into 95,000 Hilton points, and those are being used to book a $849 room, we get $849 ÷ 42,200 = 2.01 cents per point.

On paper, this seems like a great use of Amex points—getting over 2 cents per point. However, the opportunity cost of using them this way needs to be considered. 🤔

🏨 Option 1: Using Hilton Points
(42,200 Amex Membership Reward Points)

✅ Pros:

✔ Better-than-average Hilton redemption rate (0.89 cents per point instead of the usual 0.4-0.5 cents per point). 🏆
✔ Takes advantage of the Amex 125% transfer bonus, maximizing points usage. 📈
✔ No cash out of pocket, which helps if saving cash is a priority. 💵
✔ Simple and convenient, avoiding the need to earn more points later for a similar booking. 🛏️

❌ Cons:

✖ Amex Membership Reward Points can be used for much higher value elsewhere, such as airline transfers where they’re worth 2-3 cents per point or more (business and first-class flights can even exceed 5 cents per point). ✈️
✖ Opportunity cost: 42,200 Amex points could be worth $760 - $928 if used for flights instead of Hilton. 💺
✖ No Hilton elite night credits or points earned on this stay, since award stays do not accrue points. 🏨

💵 Option 2: Paying $849 in Cash

✅ Pros:

✔ Keeps valuable Amex points for higher-value redemptions (like premium flights). 🛫
✔ Earns Hilton Honors points on the stay, plus elite night credits (useful for status perks). 🎖️
✔ Eligible for promotions and potential Amex Fine Hotels & Resorts (FHR) perks. 🎁
✔ Can earn cashback or travel rewards when paid with the right credit card. 💳

❌ Cons:

✖ Requires an upfront cash payment of $849. 💸
✖ If cash flow is tight, using points might have been a better option. 🚫💰
✖ If Hilton points aren’t useful to you later, this might have been a missed opportunity to use them at a strong value. ⏳

🏆 Final Recommendation: Pay Cash and Save Amex Points

Even though transferring Amex points to Hilton for 2.01 cents per point seems like a solid deal, I advised my client to pay cash instead of using points. Here’s why:

1. 💎 Amex Points Are More Valuable Elsewhere: The biggest factor was the opportunity cost. While 2.01 cents per point is excellent for Hilton, transferring to airlines like ANA, Singapore Airlines, or Emirates could yield 2-5+ cents per point in premium cabins. ✈️💺
2. 🏨 Hilton Points Have a Lower Base Value: Hilton frequently offers 100% bonus promotions on purchased points, meaning my client could buy Hilton points later at 0.5 cents per point and get a similar redemption rate. 🔄
3. 💳 Paid Stays Earn More Benefits: Paying cash earns Hilton points + elite night credits, plus additional perks if using the right credit card:
   • Earn Hilton Honors points (especially valuable for Gold or Diamond members). 🏅
   • Earn credit card points (Amex Hilton Aspire: 14x points on Hilton; Amex Platinum: 5x on hotels). 💳
4. 🛫 Flexibility for Future Travel: Holding onto Amex points allows my client to redeem them for more valuable travel options, while transferring them to Hilton locks them into a less flexible program. 🔒

📝 When Should You Use Hilton Points Instead?

While in this case paying cash was the better choice, there are times when redeeming Hilton points makes sense:

• If cash rates are extremely high 💰📈: If the same room cost $1,500 instead of $849, then using points would be much more attractive.
• If you have a large Hilton points balance 🏨: If you’re sitting on a ton of Hilton points and don’t have another good way to use them, this could be a great redemption.
• If Hilton is likely to devalue points soon ⏳: If there’s a risk of a major program devaluation, using points now might be smart.
• If you want to minimize cash expenses 💸: Sometimes, keeping cash in your pocket is the most important priority, making a points redemption worthwhile.

💡 Alternative Ways to Reduce the $849 Cost

Since my client chose to pay cash, we also explored ways to lower the out-of-pocket cost:

1. Using Amex Fine Hotels & Resorts (FHR) 🏨: Booking through Amex FHR could offer:
   • Free breakfast for two 🥐
   • Guaranteed late checkout ⏳
   • Possible room upgrades 🔼
   • $100 resort credit 💵
2. Using Travel Credits or Cashback 💳💰: Some credit cards offer annual travel credits that could be applied.
3. Redeeming Hilton Free Night Certificates 🎟️: If my client had a Hilton Aspire, Surpass, or Business card, they could use free night certificates instead of points.

🚀 Final Thoughts: Always Maximize Value

Travel rewards are all about maximizing value and opportunity cost. In this case, paying cash preserved flexibility and allowed my client to use their Amex points for a more valuable airline redemption later.

Would you have used points or paid cash? Let me know your thoughts! 💬