Selecting the right hotel credit card

A hotel credit card serves as a travel rewards card that allows you to earn free nights, discounts, and even achieve elite status with popular hotel brands. Carrying one can bring you closer to your next getaway.

Consider these factors and questions before picking a hotel credit card.

How frequently do you travel?

If you travel often and stay in hotels, a hotel credit card is a wise choice. However, if your travels are infrequent or you prefer alternatives like Airbnbs, you may find a more flexible travel rewards card, such as the Chase Sapphire Preferred® Card, to be a better fit.

Do you have a favorite hotel chain?

If you have a preferred hotel chain, think about applying for one of its co-branded credit cards. For instance, budget travelers might lean towards IHG hotels and resorts, while Marriott offers a wide range of options across various price points and service levels.

As a loyal Marriott guest with Titanium Elite status, having a Marriott credit card allows me to maximize my points on every stay. Choose a hotel card from the chain you frequent most.

What perks does it offer?

When exploring hotel credit cards, it’s crucial to evaluate the card's benefits, which may include:

• Requirements for elite status
• Certificates for free nights
• Insurance and travel protections
• Bonus points on hotel bookings
• Credits for elite nights
• Opportunities for award stays

For instance, the IHG One Rewards Premier Credit Card instantly grants you Platinum Elite status, which comes with various benefits.

Certain hotel credit cards offer elite night credits simply for being a cardholder, bringing you closer to achieving a higher status tier. The Marriott Bonvoy Brilliant® American Express® Card is a prime example, as it automatically awards you 25 elite nights.

With IHG, you can enjoy the fourth night free when you pay with points and hold a credit card.

Earnings structure

A significant advantage of hotel credit cards is the opportunity to earn bonuses on hotel stays. Since some cards offer higher earnings than others, it's important to select the best option for your needs.

For instance, the Hilton Honors American Express Surpass® Card rewards you with 12 points for every dollar spent on Hilton stays. The Marriott credit cards can earn you up to 2 points per dollar on Marriott stays, while IHG cards provide up to 26 points per dollar spent at IHG properties. In comparison, Hyatt cards offer up to 10 points per dollar for Hyatt stays.

Are you selecting the best welcome offer?

Many hotel credit cards come with attractive welcome bonuses, like extra points or free nights, which can significantly boost your rewards. For example, Marriott offers six different credit cards, each featuring distinct welcome offers.

The Marriott Bonvoy Boundless® Credit Card has a welcome bonus of 125,000 Bonus Points after you spend $5,000 on purchases within the first three months of opening your account.

The Marriott Bonvoy Bold® Credit Card offers a welcome bonus of 60,000 points plus a complimentary night certificate (worth up to 50,000 points) after you spend $2,000 on purchases within the first three months of account opening. Note that some hotels may impose resort fees.

Welcome bonuses differ among cards, so you need to decide whether you prefer earning points or free night certificates. Also, make sure you can meet the minimum spending threshold to qualify for the offer, as it varies by card.

Is it wise to use a hotel card for your daily expenses?

While hotel cards might not always offer the best rewards for regular purchases, there are specific situations where putting your everyday spending on a hotel card makes sense.

To meet the requirements for a welcome offer, use your new card for everyday purchases to hit the spending threshold. If you're aiming to rack up points for an upcoming trip, focus on using your hotel card.

Is the annual fee justified?

Many hotel credit cards come with an annual fee, so it's essential to evaluate whether the benefits you'll receive from the card are worth that cost.

Welcome bonuses and annual free night certificates can help offset these fees, especially during your first year. Some cards even offer a free night certificate each anniversary just for maintaining the card.

For instance, the World of Hyatt Credit Card charges a $95 annual fee, but you receive a free night certificate valid at any Category 1-4 hotel after each card anniversary. This can easily cover a night that typically costs between $200 to $400, making the card a fantastic choice.

In summary

A hotel credit card is an excellent option for earning elite status and accumulating points toward your next dream getaway. Select a card that aligns with your lifestyle and preferred hotel chain to maximize its benefits. If you rarely stay in hotels, consider a travel card that offers a more flexible currency.