UMVA has learned that a significant change is underway for Chase Sapphire Preferred Card holders, affecting how they redeem Ultimate Rewards points through Hyatt transfers.
The change involves a reduced transfer ratio from Chase to Hyatt, now standing at 4:3 for new card applicants, making Hyatt awards more expensive for Sapphire Preferred Card holders. For instance, to book a 30,000-point Hyatt award, cardholders would need to transfer 40,000 Chase points at the new ratio, up from 30,000 points previously.
This change translates to additional costs for cardholders. Using current valuations, the extra 10,000 Chase points required for the same award are worth $205. This increase impacts the overall value of using the Chase Sapphire Preferred Card for Hyatt stays.
To illustrate the impact, consider a long-weekend stay at the Andaz Savannah, which costs 20,000 points per night. Previously, with a 1:1 transfer ratio, cardholders needed to transfer 60,000 Chase points. Under the new 4:3 ratio, they would need 80,000 Chase points, an extra 20,000 points worth $410.
Even for shorter stays, like a one-night stay at a Hyatt Place in Atlanta, the reduced transfer ratio makes a difference. For a 4,500-point night, cardholders would need to transfer 5,000 Chase points at a 1:1 ratio or 6,000 Chase points at a 4:3 ratio.
For longer, more aspirational stays, like a five-night stay at a Category 7 Hyatt costing 30,000 points per night, the impact is substantial. With a 1:1 ratio, cardholders needed to transfer 150,000 Chase points. At a 4:3 ratio, they would need 200,000 Chase points, an extra 50,000 points worth $1,025.
In terms of everyday spending, this change means cardholders must spend significantly more on their Chase Sapphire Preferred Card to earn the same Hyatt vacation. Calculations based on different spending profiles reveal that the required spending can increase by thousands of dollars.
For example, to earn enough points for a 4,500-point Hyatt stay, a single-card user would need to spend $2,648 at a 1:1 ratio, but $3,530 at a 4:3 ratio. Similarly, for a 150,000-point Hyatt stay, the spending required jumps from $88,236 to $117,648.
Given these changes, Sapphire Preferred Card holders should reassess whether transferring points to Hyatt remains the best option. While Hyatt is still a valuable transfer partner in some cases, cardholders may want to consider alternative Chase transfer partners or adding a Chase Sapphire Reserve product to their wallet.
Ultimately, the reduced Chase-to-Hyatt transfer ratio represents a meaningful devaluation for Sapphire Preferred Card holders who frequently transfer Ultimate Rewards points to World of Hyatt. Cardholders must now carefully calculate the value of their points and consider alternative strategies to maximize their rewards.
