The going rate for IHG points on the IHG website is $115 for 20K = $5.75/1K (using Points + Cash).
To get points that cheap with HICV points, your maintenance has to be $3.91/1K - $391 for 100K HICV points + $69 IHG conversion = $460 for 80K (100 x 4/5) IHG points.
IHG conversion is better than not using points, but not an efficient planned use of points - if you are consistently doing this, you should really look at reducing your HICV holdings.
ThePointsGuy.com rates the value of IHG points at 0.6 cents per point ($6/1k). So that's 4% different than your valuation, so probably pretty accurate. It would move the breakeven from $3.91 to $4.11/1k if you believe ThePointsGuy's value.
ReplyDeleteIf you have to convert points, doing it in large transactions gets you the best value because it's only $50 for each additional 100k HICV points. So for a 200k point conversion your maintenance fee breakeven would move from $3.91/1k to $4.00/1k ($800 for 200k HICV + $119 IHG conversion = $919 for 160k IHG points).
Bottom line though: Totally agree with Scott Kotrla. Converting points is a last resort before losing the points completely.
If you just want IHG points - get yourself the Chase IHG credit card and buy some with 100% bonus points right now. You can get IHG points for $5/1k with the current bonus they are offering.