Estimate hotel points value.
A hotel point is worth exactly what it saves you, so redemption value is the cash you avoid divided by the points you spend. Two features push that figure up. Award stays generally avoid tax on the room rate, so the cash comparison should include tax while the award does not — worth 15 percent or more straight away. Several programmes also grant a free night on every fifth award night, which cuts points spent by 20 percent while cash avoided stays the same. Most major hotel currencies sit between 0.5 and 0.8 cents per point, so anything clearing 0.8 is a genuinely good use of the balance.
Points spent
Points = per-night rate x (nights - free nights earned)
Redemption value
Cents per point = cash rate with tax x nights x 100 / points spent
Because most programmes charge no tax on the room portion of an award stay, while a paid stay is fully taxed. If you would otherwise be paying 310 plus 15 percent, the award is saving you 356, not 310 — and ignoring that understates the redemption by the whole tax rate.
For most large hotel programmes, 0.5 to 0.8 cents per point is normal and anything at or above 0.8 is strong. Consistently redeeming below 0.5 usually means you would be better off with a cash rate and collecting a cashback or transferable currency instead.