Advertiser Disclosure

Many of the credit card offers that appear on this site are from credit card companies from which we may receive financial compensation when a customer clicks on a link, when an application is approved, or when an account is opened. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). However, the credit card information that we publish has been written and evaluated by experts who know these products inside out. We only recommend products we either use ourselves or endorse. This site does not include all credit card companies or all available credit card offers that are on the market. See our advertising policy here where we list advertisers that we work with, and how we make money. You can also review our credit card rating methodology.

The Hidden Costs of ‘Free’ Hotel Nights With Points

Ehsan Haque's image
Ehsan Haque
Edited by: Alberto Riva
Jump to Section

We may be compensated when you click on a link, when an application is approved, or when an account is opened from one or more of our advertising partners. Terms apply to the offers below. See our Advertising Policy for more about our partners, how we make money, and our rating methodology. Opinions and recommendations are ours alone.

Click for Card Offers (Up to 300k!)

Top Partner Offers

BEST OFFERPlatinum Card® from American Express

Platinum Card® from American Express

Apply Now(at Amex's secure site)
As High As 175,000 Points. Find Out Your Offer.
NEW CHATGPT BENEFITThe Business Platinum Card® from American Express

The Business Platinum Card® from American Express

Apply Now(at Amex's secure site)
Your Offer Could Be As High As 300,000 Points. Find Out Your Offer.
NEW CHATGPT BENEFITAmerican Express® Business Gold Card

American Express® Business Gold Card

Apply Now(at Amex's secure site)
Your Offer Could Be As High As 200,000 Points. Find Out Your Offer.
TOP PICKAmerican Express® Gold Card

American Express® Gold Card

Apply Now(at Amex's secure site)
As High As 100,000 Points. Find Out Your Offer.

Over the last decade, I have spent more than 500 nights in hotels in more than 100 countries. While I have paid for most of them, I have also redeemed millions of points for free nights. There’s something undeniably satisfying about booking a hotel room with points and not having to pay anything out of pocket, especially when cash rates are high.

But “free” hotel nights aren’t always free. Even when you are not paying a standard room rate, there can be other costs that are easy to overlook. Before redeeming a large number of points, it’s worth considering more than just the $0 room rate.

Here’s a look at some of the hidden costs associated with “free” hotel nights, and how to spot them. This applies whether you are using points or redeeming free night certificates.

Advertisement

1. Resort Fees and Other Mandatory Charges

One of the most notorious, and frustrating, costs associated with award redemptions is hotel resort fees. Also referred to as amenity or destination fees, they are additional charges that cover a wide range of on-site amenities at many popular hotels.

Resort fees are almost always disclosed prior to booking, but they can be easy to miss and can add a lot to your final bill. A hotel may advertise a room for 25,000 points per night, and make it look like your only expense is the points themselves. However, you may discover that the property charges a mandatory daily resort or destination fee.

InterContinental Bali Sanur Resort wide
Many resorts worldwide charge resort fees.

Resort fees typically cover Wi-Fi, fitness center access, pool access, beach equipment, food credits, and other amenities. They can range from a few dollars per night to more than $50 per night at higher-end hotels, adding up to hundreds of dollars for longer stays.

Some hotel loyalty programs, like Hilton Honors and World of Hyatt, waive resort fees on award stays, which can make points redemptions even more valuable. However, the rules vary by program and property, so it’s important to check specific hotels before booking rather than assuming every award stay will have waived fees.

Bottom Line:

The points price does not necessarily show the true price of an award redemption. Some hotels charge resort or destination fees which can add a significant amount of money to “free” hotel stays.

2. Parking Fees Change the Game

Parking fees are another major expense that’s easy to overlook when you’re focused on the points price. If you are staying at a hotel in a major city, a resort, or a property near a major attraction, parking can be surprisingly expensive.

Valet parking can be upwards of $100 per night. Of course, self-parking is an option at certain properties, but that can still be a lot. For example, the Waldorf Astoria Chicago charges an absurd $85 for parking from six up to 24 hours. While I was happy to stay in a room that cost more than $500 per night using my Hilton Honors points, I was not thrilled about paying that much for parking.

Best Western Hibiscus Motel Key West parking lot
Parking fees can be quite expensive. Image Credit: Jessica Merritt

However, there is another way to look at parking. It isn’t necessarily a hidden cost of the points redemption itself, because you may have to pay it whether you redeem points or pay cash. But that’s why it matters when you’re evaluating the cost of a “free” night.

If you had picked a hotel with free parking when paying cash, but instead chose a more expensive downtown property because you found an award redemption, the parking fees become part of the overall cost of the decision.

Advertisement

3. There Is a Points Opportunity Cost

Another hidden cost that is often overlooked is the fact that your points have real value. It can be very tempting to think of points as free money, since you probably earned them without directly paying for them.

While that is technically true, points are still a limited resource. Once you spend 75,000 points for a night or multiple hotel nights, you no longer have those points available for another redemption. This indirectly creates an opportunity cost.

Aloft Bali Seminyak room wide
There is a point opportunity cost to redeeming points for free hotel stays.

Suppose you have 150,000 points and redeem 60,000 of them for a room that would have otherwise cost $400. While you technically avoided a $400 hotel bill, which is a major win, it still doesn’t mean that the stay was “free.” You redeemed those points, which could potentially have been used for a more expensive stay.

Maybe a different hotel would have charged 50,000 points for a $500 room. Or maybe those points could have been redeemed on a different night, when property cash rates were abnormally high.

Now, this doesn’t mean you should obsess over getting the most value from every point. Travel rewards are meant to be used, and convenience, location, amenities, and personal preferences and enjoyment matter.

However, the thought of points as having no cost doesn’t make sense. Before booking an award redemption, I always ask myself, “Would I still make this redemption if I thought of my points as real money?”

4. Giving Up Points You Could Have Earned With a Cash Stay

Another hidden cost worth considering when booking award stays: the points you could have earned by paying for a hotel stay and associated hotel loyalty perks and benefits.

When you pay cash for a hotel stay, you usually earn hotel points which can be redeemed for future hotel stays, elite night credits that help you attain higher status, promotional bonuses, and other similar rewards.

Depending on the specific hotel loyalty program and your status, the earnings can add meaningful value to a paid stay. Free award nights work differently — you typically don’t earn the points you would if you paid the room rate.

Waldorf Astoria Bangkok suite living room
Elite status offers many benefits at most hotel chains.

Imagine you are looking to book a hotel and have to choose between paying $250 per night or using 25,000 points for an award stay. While the award night looks like the obvious winner, the paid stay could potentially earn you 3,000 additional points.

This doesn’t account for other factors such as elite-status considerations, milestones, and promotions. The rewards you earn from a paid stay also have value, which may be higher for you if you’re close to earning or renewing hotel elite status. The difference no longer simply becomes $250 versus 25,000 points.

An extra paid stay could potentially help you reach a higher tier of elite status that provides benefits throughout the rest of the year (and/or the following year), such as room upgrades, free breakfast, late checkout, or bonus points. I have found myself in this predicament many times over the years.

Bottom Line:

When comparing a hotel’s cash rate to the points price, it is important to account for the rewards you would have earned if you had paid for the rate. This may significantly change the math behind a decision.

5. Planning, Convenience, and Flexibility Also Have a Cost

While some hidden costs can become easier to recognize once you book a lot of free hotel stays, others take a lot more consideration. One such thing to consider is the time you spend searching for an award stay.

There are times when I spend hours searching for award availability, rearranging my itinerary, or just trying to find the best possible redemption. I happen to enjoy the process, in general, but the effort it takes is a serious cost as well.

That’s not to say that paying cash is better — it most certainly isn’t. However, it underscores that the true cost of an award stay using points includes more than the amount shown at booking.

Hilton Chicago:Oak Brook Hills Resort room wide
There are some important things to consider beyond the number of points when booking free hotel award stays.

Additionally, using points for free hotel stays can sometimes come with less flexibility than paying cash. There are many times when free night hotel award availability may be limited, particularly during holidays, major events, or peak travel periods.

You may also need to book specific dates, stay a minimum number of nights, or book a specific room category. All of those factors are worth considering and may create indirect costs.

Advertisement

For example, if you need to book a hotel for Wednesday and there is no award space for that day, you may need to change your itinerary or move to an entirely new property. Of course, that may also come with a different cost. Maybe the other hotel has award availability for that night, but costs tens of thousands more points.

Final Thoughts

Redeeming points for free hotel nights is a win, no matter how you look at it. But often there are hidden costs you need to think about.

Whether that be resort fees, parking fees, or the opportunity cost to booking one hotel over another, it’s important to account for these costs, because they factor in the overall calculation of how much a points redemption will actually cost.

Ehsan Haque's image

About Ehsan Haque

Ehsan is an avid traveler who has traveled to 100 countries, diligently using points and miles to fund his journeys. Currently, he holds 32 active credit cards and earns over a million points and miles annually, primarily using them for luxury hotels and long-haul premium cabins.

INSIDERS ONLY: UP PULSE™

Deluxe Travel Provided by UP Pulse

Get the latest travel tips, crucial news, flight & hotel deal alerts...

Plus — expert strategies to maximize your points & miles by joining our (free) newsletter.

We respect your privacy. This site is protected by reCAPTCHA. Google's privacy policy  and terms of service  apply.

Deluxe Travel Provided by UP Pulse

We Recommend

Platinum Card® from American Express

  • You may be eligible for as high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
Show more
  • $600 Hotel Credit: Get up to $300 in statement credits semi-annually on prepaid Fine Hotels + Resorts® or The Hotel Collection* bookings through American Express Travel® using the Platinum Card®. *The Hotel Collection requires a minimum two-night stay. Effective January 1, 2027, Fine Hotels + Resorts® bookings will require a minimum two-night stay to be eligible for the $600 Hotel Credit.
  • With over 1,550 airport lounges - more than any other credit card company on the market* - enjoy the benefits of the Global Lounge Collection, over $850 of annual value, with access to Centurion Lounges, 10 Delta Sky Club visits when flying on an eligible Delta flight, Priority Pass membership (enrollment required), and other select partner lounges. *As of 08/2026.
  • $200 Uber Cash + $120 Uber One Credit: With the Platinum Card® you can receive $15 in Uber Cash each month plus a bonus $20 in December when you add your Platinum Card® to your Uber account to use on rides and orders in the U.S. when you select an Amex Card for your transaction. Plus, when you use the Platinum Card® to pay for an auto-renewing Uber One membership, you can get up to $120 in statement credits each calendar year. Terms apply.
  • $300 Digital Entertainment Credit: Experience the latest shows, news and recipes. Get up to $25 in statement credits each month when you use your Platinum Card® for eligible purchases on Disney+, a Disney+ bundle, ESPN streaming services, Hulu, The New York Times, Paramount+, Peacock, The Wall Street Journal, YouTube Premium, and YouTube TV when you purchase directly from one or more of the providers. Enrollment required.
  • $400 Resy Credit + Platinum Nights™ by Resy: Get up to $100 in statement credits each quarter when you use the Platinum Card® to pay for eligible purchases with Resy, including dining purchases at over 10,000 qualifying U.S. Resy restaurants. Enrollment required. As a Platinum Card® Member you have special access to reservations on select nights at participating sought after Resy restaurants through Platinum Nights™ by Resy. Simply add your Platinum Card® to your Resy profile to book your reservation.
  • $219 CLEAR+ Credit: CLEAR+ helps get you to your gate faster by using your face to verify you are you at 60+ airports nationwide. You can cover the cost of a CLEAR+ Membership* with up to $219 in statement credits per calendar year after you pay for CLEAR+ with your Platinum Card®. *Excluding any applicable taxes and fees. Subject to auto-renewal.
  • $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees, such as checked bags and in-flight refreshments, are charged by the airline to The Platinum Card® Account. American Express relies on airlines to submit the correct information on airline transactions to identify incidental fee purchases. If you do not see a credit for a qualifying incidental purchase on your eligible Card after 8 weeks, simply call the number on the back of your Card. Qualifying airlines are subject to change. See terms & conditions for more details.
  • Whatever the occasion, choose from our two signature collections of premium hotels, curated to inspire and excite you when you book through Amex Travel™: Fine Hotels + Resorts® is a collection of over 1,900 luxury hotels that are destinations unto themselves and the Hotel Collection includes over 1,400 upscale hotels in desirable destinations.
  • $300 lululemon Credit: Enjoy up to $75 in statement credits each quarter when you use the Platinum Card® for eligible purchases at U.S. lululemon retail stores (excluding outlets) and lululemon.com. That’s up to $300 in statement credits each calendar year. Enrollment required.
  • $155 Walmart+ Credit: Get up to a $12.95* statement credit back each month after you pay for a monthly Walmart+ membership (subject to auto-renewal) with your Platinum Card®. *Up to $12.95 plus applicable taxes on one membership fee.
  • Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
  • $895 annual fee.
  • Terms Apply.
DMCA.com Protection Status