If you’re a frequent traveler, you’ve likely earned IHG points through hotel stays, credit card spending, or promotions. But a question that often comes up is: How much are these points actually worth? Knowing the answer can help you decide whether to redeem them for a free night or pay cash instead.
In this guide, we’ll break down the value of IHG points, explore their best uses, and share practical tips to maximize their worth—all tailored for travelers who want to make the most of the IHG One Rewards program.
What Can You Do with IHG Points?
IHG points are part of the IHG One Rewards program, which includes hotel brands like InterContinental, Holiday Inn, Kimpton, and Crowne Plaza. The most common way to use these points is for free hotel stays, which usually gives you the best value. But there are other ways to use your points on the IHG website, such as…
- Online shopping: Redeem points for items like electronics, jewelry, or designer goods.
- Gift cards: Exchange points for vouchers from various retailers.
- Digital rewards: Download eBooks, games, or software.
- Charity donations: Contribute points to the IHG Foundation.
- Airline miles: Convert points into miles with partner airlines.
While these alternatives exist, they usually deliver less value per point compared to hotel redemptions. Unless you have a specific need—like needing a few extra airline miles for a flight—sticking to free hotel stays is generally the smartest move. Let’s explore why by digging into how to measure their value.
How to Calculate the Value of IHG Points for Hotel Stays
To figure out if redeeming points for a hotel stay is worth it, you need a simple calculation. Here’s how:
- Check the cash price of the room (including taxes and fees, since points bookings are tax-free).
- Note the number of points required for the same night.
- Divide the cash price by the point price, then multiply by 100 to get the value in cents per point.
Example: Imagine you’re booking a night at the Hotel Indigo Grand Cayman.
The cash price is $895, and it costs 70,000 points. Plugging in the numbers:
($895 ÷ 70,000) × 100 ≈ 1.3 cents per point
This means you’re getting 1.3 cents of value for each point—a pretty solid deal! Since IHG introduced dynamic pricing in 2021, some hotels have offered unexpectedly high redemption values, though this may not last as point values tend to decline over time.
To decide if 1.3 cents per point is good, we need a benchmark—let’s look at what IHG and the travel community say about point value.
IHG’s Official Take on Point Value
IHG doesn’t publish an official value for their points, but their selling price offers a clue. Normally, you can buy IHG points for 1 cent each. However, during frequent promotions (often monthly), prices drop as low as 0.5 cents per point with bonuses like “buy one, get one free.”
This 0.5 cents per point is a key reference point—it’s the minimum value IHG seems to place on their points. If you can redeem points for more than 0.5 cents each, you’re coming out ahead. In the Hotel Indigo example, 1.3 cents per point is well above this threshold, making it a smart redemption.
Better yet, if you spot a great redemption but lack points, buying them during a promotion can save you money. For that $895 room costing 70,000 points, purchasing the points at 0.5 cents each would cost $350—a 60% discount off the cash price.
How the Travel Community Values IHG Points
Travel enthusiasts often debate point values based on their own redemptions. For IHG points, estimates typically range from 0.5 to 0.8 cents per point. This varies by region and personal experience, but 0.5 cents per point aligns with IHG’s promotional pricing and serves as a conservative baseline.
Occasionally, you might snag a redemption worth more—say, 1.5 cents per point—but these are outliers tied to specific hotels or timing. For most travelers, aiming for at least 0.5 cents per point is a practical goal. If you’re pickier, you might hold out for 0.7 cents or higher. It’s your call—what matters is choosing a value that fits your travel style.
Factor in Points Earned from Cash Stays
Here’s a twist: when you pay cash for an IHG stay, you earn points back, which affects the real cost. Points bookings, on the other hand, don’t earn points. This “cash-back” element can tip the scales when deciding between points and cash.
Let’s revisit the Hotel Indigo Grand Cayman. The pre-tax price is $664 (total $895 with taxes). As a base member, you earn 10 points per dollar spent on the pre-tax amount, so:
$664 × 10 = 6,640 points
If there’s a double-points promotion, you’d earn another 6,640 points. With Platinum Elite status (a 60% bonus), you’d add 3,984 more points. Total: 17,264 points.
Now, when you use points to book, you’re not just spending the 70,000 points required for the redemption—you’re also missing out on the 17,264 points you could have earned if you’d paid cash. To account for this opportunity cost, some travelers adjust the redemption valuecalculation by adding the forgone points to the points used:
Value per Point = Cash Price ÷ (Point Price + Points Earned on Cash Stays) = $895 ÷ (70,000 + 17,264) ≈ 1 cent per point
Even with this adjustment, the redemption value is still 1 cent per point, which is higher than the typical valuation of 0.5 cents per point. So, using points remains a good deal in this case. However, for other hotels where the redemption value is closer to the threshold, factoring in the forgone points might make paying cash the better option.
Key takeaway: If you value the points you’d earn from a cash stay, be sure to include this opportunity cost in your decision. For hotels where the redemption value is marginal, this could tip the scales in favor of paying cash.
Wrapping Up: How to Make IHG Points Work for You
So, what’s the takeaway? A good rule of thumb is to value IHG points at around 0.5 cents each. When you’re booking a hotel, calculate the redemption value:
- Above 0.5 cents per point? It’s likely a good deal.
- Below that? Cash might be the better play, especially if you’ll earn points back.
For the best bang for your buck, focus on redeeming points for hotel stays—other options like shopping or airline miles rarely measure up unless you have a specific need. If you’re short on points, watch for IHG’s frequent sales to buy them at 0.5 cents each and score a discount on your next stay.
Travel trends show points losing value over time, so don’t hoard them forever. Use them wisely, and you’ll unlock some fantastic stays at IHG properties worldwide. Whether it’s a budget-friendly Holiday Inn or a luxurious InterContinental, understanding your points’ worth is the key to traveling smarter.
IHG Points Value Calculator
Use our IHG Points Value Calculator below to quickly convert your IHG points into their dollar equivalent, based on a valuation of 0.5 cents per point. This tool is especially handy for figuring out the value of your points when planning free night redemptions at IHG hotels.