If you're into Hilton HHonors, the zero annual fee Amex HHonors pays 6 HHonors points per dollar at grocery stores, gas stations and drug stores (and others). HHonors points aren't the most valuable point, but 6 per dollar is better than 1 SPG point or 1 UR point.
Interesting. Here's my thinking. I'll assume I spend $300/month on groceries (just me and the wife). 6% cash back on the Amex blue cash preferred yields $216 - $75 = $141 cash back. Here's a breakdown of the various HHonors cards (which seem to offer the highest yield for points to groceries spend), including signup bonuses, and point values with the equivalent cash values for Waldorf Astoria locations. I'll base it on the rack rate prices for the Grand Wailea in Maui (I wonder what the Jerusalem Waldorf will go for...), which, as of today, has a rack rate for a Deluxe Garden room of $589/night. I figure points would be worth more than cash for stays at the Waldorf resorts based on the following:
Cash back: With a grocery budget of $300/month = $3600/year @ 6% cash back = $216.
Points: With a grocery budget of $300/month = $3600/year = 21,600 points.
Grand Wailea (Waldorf resort) room = $589/night v. 50000 points for a free Waldorf stay (from
here).
If I use the cash back value towards the hotel room, one year of groceries will pay for 37% of the hotel room. But if I use
points, one year of groceries (
not including signup bonuses) will pay for 43% of the hotel room. The difference may be minimal, but if I'm looking to use the points for a particular trip and want to extend it beyond a one-year use, it probably would be worth it (if you disagree, let me know!). Again, I'd love to see what Waldorf Jerusalem would go for...
Citi HHonors Reserve Card:
Signup Bonus: two weekend night certs at select hotels (cat 1-7 and
select Waldorf properties)
Annual Fee: $95
Earnings on Groceries: 3 ppd
Total Points per year on groceries: 10,800
Citi HHonors Visa Signature:
Signup Bonus: 40,000 ($1K spend first 4 months)
Annual Fee: none
Earnings on Groceries: 3 ppd
Total Points per year on groceries: 10,800
Hilton HHonors Card from Amex:
Signup Bonus: 40,000 ($750 spend first 3 months)
Annual Fee: none
Earnings on Groceries: 6 ppd (and 6 ppd on most bills)
Total Points per year on groceries: 21,600
Hilton HHonors Surpass from Amex:
Signup Bonus: 40,000 (1st purchase) + 20,000 ($3K spend first 3 months)
Annual Fee: $75
Earnings on Groceries: 6 ppd (and 6 ppd on most bills, 9 ppd at hilton properties)
Total Points per year on groceries: 21,600
Basically, I don't see any benefit to the Hilton Visa card over the Hilton Amex (and I've never come across a grocery store that doesn't accept Amex). I'm currently HHonors Gold, so I get a 25% bonus on all Base points earned (Question: Do points earned through CC bonuses count as base points?)
Seems like the HHonors card from Amex is the fastest way to earn in the long run (> 1 year). While the Citi HHonors Reserve card would give me the 2 free stays, I have no interest in spending $10K on the card for the yearly stays after that.
Thoughts? Am I foolishly overlooking something?
