Even with the upcoming category changes, there’s still plenty of value in World of Hyatt points

It’s becoming an annual tradition. Each February or March, World of Hyatt announces its annual category changes about a month before implementing them. As soon as Hyatt releases the list of category changes, loyalists — myself included — carefully examine the list to see if properties we love or hope to eventually visit will soon require more or fewer points for a stay.

Each year, some travelers bemoan the decline of the World of Hyatt program after the category change announcement. But, as TPG director Carly Helfand said while discussing this year’s changes, “Every year I notice at least one that I’ve enjoyed staying at that’s getting cheaper, which also makes it a little more bearable. This time it’s the Calistoga Motor Lodge & Spa — it’s a really good option in wine country.”

Like Carly, I also look through the list to find appealing properties that will drop a category. Plus, although points costs have increased significantly over the years for some properties, I believe there’s still plenty of value in redeeming Hyatt points. Here’s why.

Hyatt still has an award chart

Over the years, many loyalty programs have moved to dynamic award pricing. Dynamic award pricing isn’t inherently bad, but it usually leads to the program’s points or miles eventually decreasing in value. And it almost always makes getting outsize value from your rewards more difficult.

The excellent news is that Hyatt didn’t decide to remove or change its award chart this year. World of Hyatt knows its award chart is a differentiator, especially when competing against programs with larger footprints.

Since World of Hyatt uses an award chart, you can predict how much you’ll need to redeem for upcoming stays. Plus, having an award chart means you can often escape peak pricing during events or high season.

Related: Your guide to the World of Hyatt award chart

World of Hyatt uses peak, standard and off-peak pricing for each category, but I’ve booked far more off-peak award nights than peak award nights. The difference between off-peak and peak award rates is also minimal: just 3,000 points for Hyatt Category 1 properties, 6,000 points for Hyatt Category 4 properties and 10,000 points for Hyatt Category 7 properties. Even once you consider that Hyatt points are worth much more than most other hotel points, this is a less significant difference than you’ll find in most other hotel loyalty programs.

However, I expect we’ll continue to see Hyatt bring select brands and properties in at dynamic award rates, as we saw with Mr & Mrs Smith and The Venetian Resort Las Vegas. If this is what Hyatt needs to do to maintain an award chart for most of its properties, I won’t fret over it. If I choose to stay at these properties, I’ll opt to earn Hyatt points instead of redeeming them.

Related: Should I get the World of Hyatt Credit Card or transfer points from Chase instead?

Hyatt’s annual award category update is reasonable

Let’s be honest: It’s reasonable for World of Hyatt to update the award category for some of its properties once a year.

Sure, it’s been sad to see some properties slowly climb in category each year. And I’m personally bummed to see that the only Category 1 Park Hyatt — the Park Hyatt Chennai — will finally move up to Category 2. But as occupancy, average daily rates and other factors shift for a property, it’s only reasonable for its category to shift.

I also appreciate how Hyatt handles its annual category changes, especially as many other loyalty programs make no-notice devaluations. Hyatt usually announces its planned category changes about a month before they go into effect, so members have ample time to accrue Hyatt points and book any final stays they want at the current award rates. Plus, Hyatt refunds points for any bookings that drop in award category between when you book and when you stay.

In short, if we want the World of Hyatt program to maintain its award charts, we must accept that properties will sometimes change categories. Hyatt announces and handles these category changes in the best possible way, which I appreciate.

Related: 5 ways to book Hyatt award stays without enough points in your account

Hyatt points are still extremely valuable

TPG’s February 2025 valuations peg the value of Hyatt points at 1.7 cents each. However, I personally think this valuation is incredibly conservative, as I’ve gotten an average of 3.91 cents per point when redeeming Hyatt points for stays within the last year.

Three properties I’ve redeemed Hyatt points at within the last year will increase in category on March 25: Lindner Hotel Prague Castle, Hyatt Centric The Liberties Dublin and Hyatt Place Frankfurt Airport. Interestingly, none of these properties gave me an above-average redemption rate when I stayed.

For example, this February, I redeemed 40,000 points for an eight-night stay at Lindner Hotel Prague Castle that would have otherwise cost $1,124. This meant I got a modest redemption rate of 2.81 cents per point. However, once this property moves to Category 2, I would need to redeem 64,000 points for the same stay. This would drop my redemption rate to 1.75 cents per point, barely above TPG’s February 2025 valuation of Hyatt points.

The good news is that all of my highest redemption rates within the last year were at properties that aren’t changing in category on March 25, such as the Lindner Hotel Cologne Am Dom, Hyatt Place Austin Airport, Park Hyatt Maldives Hadahaa and Hyatt Place Dallas / Las Colinas. And I’ve booked some excellent redemptions for later this year in South Africa and Sweden that will give me more than five cents per Hyatt point.

So, although you may find these category changes decrease your redemption rate at some properties, I suspect you’ll still get good redemption rates overall. This is particularly true if you’re willing to occasionally book paid rates at World of Hyatt properties or use another program for some stays. I still see World of Hyatt as one of the best Chase Ultimate Rewards transfer partners. And I suspect I’ll eventually transfer my Bilt Rewards Points to World of Hyatt — especially if we ever see a Hyatt transfer bonus on a Bilt Rent Day.

Related: 5 easy ways to maximize Hyatt award redemptions

Bottom line

One year, a TPG staffer proclaimed that his Hyatt free-night certificates felt nearly worthless after the annual category change announcement. He’s certainly allowed to feel this way, but I didn’t agree at the time and don’t agree now. I still get ample value when redeeming World of Hyatt points and free night certificates.

Get your award bookings in by March 25 at the current rates for any properties that are jumping a category. But also take some time to consider what properties you want to redeem Hyatt points at this year. For example, I’m considering all the properties I fear might increase in category. This year seems like a great time to visit, as they could go up in category next year.