Chase lately introduced a number of modifications to the Chase Sapphire Preferred® Card (see rates and fees).
Most of these changes are positive, together with a bigger annual lodge credit score and extra 3-points-per-dollar bonus classes (all whereas holding a low $95 annual price). Nonetheless, one change stands out for vacationers who often switch Chase Final Rewards factors to World of Hyatt.
Starting June 15 for brand spanking new cardholders and Oct. 1 for current cardholders, Sapphire Most popular transfers to Hyatt will drop from 1:1 to 4:3.
The change additionally applies to the Ink Business Preferred® Credit Card (see rates and fees), although Ink Enterprise Most popular cardholders will not see the brand new switch ratio take impact till Oct. 1.
The Chase Sapphire Reserve® (see rates and fees) and Chase Sapphire Reserve for Business℠ (see rates and fees) will proceed to supply 1:1 transfers to Hyatt.
And, fortunately, on account of some eligibility changes earlier this year, now you can have a Chase Sapphire Most popular and nonetheless be eligible to get the welcome bonus on the Sapphire Reserve.
That raises an apparent query: At what level does the Sapphire Reserve’s greater annual price turn out to be price paying merely to protect Hyatt switch worth?
Associated: Who is eligible for the Chase Sapphire Reserve 150,000-point bonus
How a lot does the Hyatt switch change really price?
So, armed with all this information, the timing is true to take an actual have a look at your precise Hyatt switch patterns and see in the event you is perhaps higher served by including the Chase Sapphire Reserve to your pockets.
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The timing is especially related proper now as a result of the Chase Sapphire Reserve is at present providing its highest-ever welcome bonus: Earn 150,000 bonus factors after spending $6,000 on purchases within the first three months. This supply ends at 8 a.m. ET on June 15.
Whereas I transfer Chase points to Hyatt a number of instances a yr, many cardholders probably do not, so this may not be an enormous change for everybody.
Let’s take a look at what number of factors you’d must switch yearly earlier than the Reserve begins profitable on a purely mathematical foundation.
To do that, now we have to make a number of assumptions.
I will use TPG’s June 2026 valuation of two.05 cents per Chase level and assume an efficient annual price distinction of $400 between the 2 playing cards.
I arrived at that determine by taking the Sapphire Reserve’s $795 annual price, subtracting the Sapphire Most popular’s $95 annual price after which subtracting the complete worth of the Sapphire Reserve’s $300 annual travel credit.
I am deliberately ignoring the worth of the Sapphire Reserve’s other benefits, as I feel it is affordable to imagine that somebody who cares sufficient about Hyatt transfers to run this comparability could have no bother utilizing the complete as much as $300 journey credit score.
Focusing solely on the distinction in Hyatt switch charges, it makes this a intentionally conservative comparability.
The break-even level: About 60,000 Hyatt factors per yr
Here is why:
- Chase Sapphire Reserve at a 1:1 switch ratio: 60,000 Chase factors = 60,000 Hyatt factors
- Chase Sapphire Most popular at a 4:3 switch ratio: 80,000 Chase factors = 60,000 Hyatt factors
In different phrases, as soon as the brand new switch ratio takes impact, Sapphire Most popular cardholders might want to switch 20,000 extra Chase factors to generate the identical 60,000 Hyatt factors.
For context, 60,000 Hyatt factors is commonly sufficient for about three nights at resorts such because the Hyatt Regency Grand Cypress in Orlando or the Hyatt Regency Hill Nation Resort and Spa in San Antonio, although award pricing varies by property and date, particularly on the heels of a number of the changes the World of Hyatt underwent just some weeks in the past.
Utilizing TPG’s valuation of two.05 cents per Chase level, these extra 20,000 factors are price $410. Which is basically the identical because the $400 annual-fee distinction used on this evaluation. In consequence, roughly 60,000 Hyatt factors per yr turns into the break-even benchmark.
Backside line
When you’re often transferring 60,000 factors — or extra — to Hyatt, then the current modifications to the Sapphire Most popular make a compelling case for carrying the Sapphire Reserve.
Then again, in the event you usually switch solely, say, 30,000 Hyatt factors or much less every year and also you need to maintain your annual charges low, the mathematics should still favor sticking with the Sapphire Preferred and its $95 annual price, particularly in the event you do not count on to get a lot worth from the Sapphire Reserve’s different advantages.
In my very own case, I’ve acquired more than $2,220 in value from the Sapphire Reserve’s credit alone during the last yr, so the cardboard simply justifies its annual price for me earlier than I even issue within the Hyatt switch benefit.
Lounge entry, journey credit, incomes charges and different perks all play a job in figuring out which card is the higher match. But when Hyatt is considered one of your major Chase switch companions, the brand new 4:3 switch ratio creates a transparent benchmark: Round 60,000 Hyatt factors per yr is the place the Sapphire Reserve begins turning into considerably extra compelling.
In fact, Hyatt transfers are just one piece of the equation. Much more goes into determining which card is finest for you than only one issue, so this is our full review of the Chase Sapphire Reserve and our full review of the Chase Sapphire Preferred that can assist you make the precise name on your life-style.
Final probability Chase Sapphire Reserve: Earn 150,000 bonus factors after spending $6,000 on purchases within the first three months. This supply ends at 8 a.m. ET on June 15.
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