If you enjoy traveling and happen to prefer a particular hotel chain, you may want to consider enrolling in that hotel’s loyalty program. But if you stay multiple times per year with the same chain, you may want to take the next step and consider getting the hotel credit card that’s tied to that loyalty program. You’ll earn extra bonus points on your stays and put yourself on the fast track to a higher-tier status.
Enrollment in hotel loyalty programs lets you rack up points that you can use to earn free night rewards and offset the cost of a future stay. And if you move into a higher status level in the program, you can unlock additional benefits and perks like room upgrades and late checkout.
But is a hotel credit card worth it when there are so many other types of credit card offers out there? Before you can decide, it’s important to learn more about how hotel credit cards work, the unique perks they offer, and how they compare to general travel rewards credit cards.
What is a hotel credit card?
Credit cards for hotels are co-branded cards that are directly tied into a hotel chain’s loyalty program. The best hotel credit cards allow cardmembers to earn rewards points on eligible purchases. You can then use those points to boost your hotel loyalty account, sometimes earning attractive perks and rewards.
Typically, you’ll earn the highest bonus points when you use the card for purchases with the hotel chain itself, such as bookings or purchases made on property. Some credit card issuers also offer bonus points when you spend in particular categories, such as travel, dining, or grocery stores.
Different levels of hotel credit cards
There are varying levels/tiers of hotel credit cards with different perks, fees, and terms.
Entry level cards are geared toward cardholders who may stay with a hotel chain a couple of times per year. These cards typically don’t have an annual fee. For more frequent travelers, annual fee cards usually offer bigger bonus point opportunities, better benefits, and sometimes automatic tier status.
In general, if the annual fee is higher, there will be access to more and better VIP-level perks. Keep in mind that you’ll usually need a good to excellent credit score to qualify for the best hotel credit cards.
Perks of hotel credit cards
Hotel credit cards are usually packed with perks for cardholders. These benefits are designed to reduce the cost of your hotel stay and provide a more enjoyable experience. Benefits may include discounts on purchases made on property, freebies, special treatment, and room upgrades.
Keep in mind that terms apply, so you may have to meet some minimum requirement to receive these perks. Also, a particular perk may not be available at all times or at every property. Higher level hotel cards will likely include a bigger selection.
Sign-up/Welcome bonus
Hotel card welcome offers generally provide a lot of points up front once you meet the issuer’s qualifications. For example, a sign-up offer may give you 50,000 hotel points after spending $3,000 in the first three months of card membership.
Account anniversary free night
A free night award is one of the best hotel credit card perks because you typically earn it automatically each calendar year simply by having the card and keeping your account in good standing.
Automatic status
It can take a few stays and a certain level of spending to move up through a hotel program’s status tiers, but some cards may provide an instant boost to cardholders.
Perks during hotel stays
A special check-in line, free snacks and water, free room upgrades, late checkout, premium Wi-Fi, and free parking are just a few examples of how a hotel credit card may enhance your guest experience.
TSA Precheck or Global Entry
If you’re a traveler, you know the pain of long check-in lines at the airport. Some hotel credit cards offer you a statement credit as reimbursement for purchasing TSA Precheck or Global Entry status. Both of these can help you speed through that process.
Airport lounge access
Frequent flyers appreciate the opportunity to do their pre-flight waiting in an airport lounge, enjoying complimentary snacks and drinks. These lounges are not open to everyone, and membership is quite pricey, but a premium co-branded hotel credit card may grant you access.
No foreign transaction fee
If you travel abroad, then it’s worth considering a card that does not charge a foreign transaction fee. Many hotel credit cards waive this fee, which is usually around 3% on purchases made outside the U.S.
Hotel card vs traditional travel credit card
Choosing between credit cards with hotel rewards and travel credit cards really comes down to your spending and travel habits.
Travel credit cards offer more flexibility
If you prefer to have flexibility when choosing resorts and hotels for your trips, you may prefer a general travel credit card.
The best travel credit cards have a slew of perks and benefits including airline fee credits and Priority Pass for airport lounges, as well as their own travel portals that help you save more on travel bookings. They may also reward you with bonus points for spending in non-travel categories such as U.S. restaurants or U.S. supermarkets.
Travel credit cards also provide more redeeming options for your points, though redemption value is typically highest when you use rewards points toward travel.
Hotel credit cards let you maximize a loyalty program
If you’re loyal to specific hotel brands, then it may be worth exploring cards that are co-branded with those properties. These cards are hyper-focused on hotel rewards rather than all aspects of travel.
For people who book many stays throughout the year, hotel cards may also help you advance through the status tiers more quickly. Jumping from gold status to diamond status, for example, will unlock a host of additional benefits.
Hotel card vs airline credit card
Hotel cards and airline cards are actually very similar. The difference comes down to whether you want air travel and enjoy perks when you fly or focus more on enhancements for your stay.
Both airline and hotel cards are tied to a specific loyalty program. With airlines, this is a frequent flier miles program. Airline cards may offer perks like a free companion ticket, free checked bags, priority boarding, and in-flight discounts, as well as an introductory offer. Airline cards with annual fees typically have additional, more premium benefits.
Some cardholders carry both an airline credit card and a hotel credit card so they can explore the benefits of both.
Are hotel credit cards worth it?
Determining if hotel cards are worth it depends on the type of travel rewards, you’re hoping to earn and how loyal you are to a particular hotel chain. If you like trying out different types of luxury hotels without worrying about which brand owns them, you may get more out of a general travel rewards credit card.
