Last December, I was trying to book a hotel for three nights for a family gathering, and I spent quite a while deliberating. The same room cost $220 per night including tax if paid in cash, or 40,000 points.

Since I had points accumulated, I thought I could just use them, but when I actually did the math, the situation changed. Today, I want to share the calculation method I organized back then.

The key is very simple. You need to see how much value one point has in cents for this reservation.

The formula is as follows: subtract the costs you still have to pay when booking with points from the cash price, divide that by the number of points needed, and then multiply by 100.

In my case, dividing $220 by 40,000 and multiplying by 100 gave me 0.55 cents. This means each point is worth 0.55 cents.

Now, we need a benchmark to determine if this number is good or bad. This is where many people get stuck.

You can refer to the benchmark values provided by travel point evaluation sites. As of September 2026, one source lists Hyatt at 1.5 cents, Marriott at 0.7 cents, IHG at 0.6 cents, and Hilton at 0.4 cents.

These values can vary slightly by site. Some places value Hyatt at over 1.7 cents, while others see Hilton in the range of 0.35 to 0.5 cents.

So, even the same 0.55 cents can be judged completely differently depending on the brand. Since the place I was trying to book was part of the Marriott chain, it was below the benchmark of 0.7 cents, and I ended up paying in cash.

On the other hand, if it had been Hilton, 0.55 cents would be considered above the benchmark, leading to the conclusion that using points would be better. A single number can change the decision.

It would be nice if that was the end of it, but in reality, there are a few more variables to consider in the calculations. Missing these can lead to incorrect conclusions.

The first is the resort fee. Those booking hotels in vacation areas at year-end should definitely check this.

Hilton and Hyatt waive the resort fee when booking with points. Marriott and IHG still charge the resort fee even for point stays.

So, when calculating Marriott points, you need to subtract the resort fee from the cash price for accuracy. Conversely, for Hilton and Hyatt, that amount is added directly to the value of the points.

The second is the benefit of extended stays. If you're staying for a longer period, like during year-end holidays, this can be quite significant.

Marriott Bonvoy offers all members a free night when booking five consecutive nights at the same hotel with points, effectively making the lowest point night free. This is known as Stay for 5, Pay for 4.

Hilton Honors also offers a free night on the fifth night, but this applies only to elite members booking standard room rewards. Remember that it doesn't apply if you don't have an elite status.

IHG gives a free night on the fourth night for cardholders who book four consecutive nights with points. However, starting in 2027, there will be a condition of spending $5,000 annually, so keep that in mind for next year's plans.

When these benefits are applied, the actual points required decrease, so it's better to calculate based on the total stay rather than per night.

The third is opportunity cost. If you pay in cash, you earn points from that stay, along with credit card rewards.

If you pay with points, you forfeit that earning. I account for this by slightly reducing the value of the points earned from the cash price when comparing.

During year-end, cash prices can fluctuate significantly. Between Christmas and New Year, the same room often sees a sharp increase in price.

However, point prices can also rise with cash prices depending on the brand, or they may not rise as much due to fixed charts. So, during this season, point efficiency can sometimes appear better than usual.

My method is as follows: I keep track of both cash and point prices for a few days before and after the desired date, and then I calculate the cents using the formula.

Then, I only book points on days that are definitely higher than the benchmark, mixing cash for the rest. It can be done in under 10 minutes with an Excel sheet.

Honestly, at first, I wondered if it was necessary to go to such lengths. But after trying it once, I realized how much I was losing by just using points.

Points are ultimately a currency whose value is determined by the company, so the chart can change or the value can decrease at any time. Holding onto them for too long isn't the answer either.

So, I would use points without hesitation for year-end reservations that exceed the benchmark. If it falls short, I would pay in cash and save the points for the next opportunity.

Before making your year-end reservations, I encourage you to crunch the numbers just once. You might find the answer comes quickly.