When you stay at Marriott family of hotel as a Marriott Rewards member, the property pays certain percentage of the revenue to the program for the points that are issued to you. Then when you stay using points, the property (where you are burning your points) is reimbursed for the stay by the Marriott Rewards program.
People are often very curious, how much are the properties reimbursed for the award stays? The answer most of the time is, very little.
The award night reimbursement among different hotel chains are fairly similar. Last year, I wrote about Hilton’s award reimbursement rates to properties that were shown during a glitch on their website. You can access that article here.
The baseline reimbursement rate is usually very low – anywhere from $15 to $50 per night. If the hotel is at high occupancy rate (95%), they usually get the ADR (Average Daily Rate) of the night. There are incentives for hotels to offer more award availability by offering higher than baseline reimbursement rates.
Hare are some Marriott examples from different award categories and brands. I just chose a random date in the future that had award availability and the reimbursement rate for that date.
Category 1: Fairfield Inn & Suites Marianna 7500 Points – $21
Category 2: Courtyard Shanghai-Pudong 10000 Points – $13
Category 3: JW Marriott Pune 15000 Points – $15
Category 4: Residence Inn Ottawa-Downtown 20000 Points – $15
Category 5: SpringHill Suites Asheville 25000 Points – $44
Category 6: The Istanbul Edition 30000 Points – $177
Category 7: Vienna Marriott 35000 Points – $158
Category 8: Boscolo Plaza Roma Autograph Collection 40000 Points – $186
Ritz Tier 1: Ritz-Carlton Beijing 30000 Points – $40
Ritz Tier 2: Al Bustan Palace 40000 Points – $136
Ritz Tier 3: Ritz-Carlton Fort Lauderdale 50000 Points – $177
Ritz Tier 4: Ritz-Carlton South Beach 60000 Points – $201
Ritz Tier 5: Ritz-Carlton Shanghai-Pudong 70000 Points – $40
As you can see from the examples above, the monetary compensation during low occupancy can be very little. Also, the category of the hotel i.e. Ritz-Carlton Shanghai-Pudong doesn’t mean that it would necessarily get higher than the baseline compensation regardless of the Marriott Rewards points required for the night.
I certainly wouldn’t mind paying the award reimbursement rates in cash rather than points…..