AMEX Starwood Review: Free Nights at Hotels

Starwood Preferred Guest® Credit Card from American Express Starpoints® BONUS: 10K with your first purchase and another 15K when you spend $5k within 6 months – enough for up to 6 free nights at a category 1 or 2 hotel. Free nights, free flights: Redeem Starpoints with over 350 airlines through SPG Flights and more than 1,000 hotels and resorts worldwide. No blackout dates 2011 SmarterTravel® Award for "Best Travel Rewards Card" $0 introductory annual fee for the first year, then $65 Go to issuer's official application, terms, and details Intro APR for Purchases Intro APR for Balance Transfer APR as low as Annual Fee - - 15.24% - 19.24% (Variable) $65

When you make purchases on this card, you collect Starpoints. You earn 1 Starpoint for each dollar spent on purchases.

When you use this card at Starwood properties, you earn additional bonus points. Regular Starwood Preferred Guest (SPG) members earn 4 Starpoints for each dollar spent at Starwood hotels (2 Starpoints per dollar spent on the card in addition to the 2 Starpoints you can get as a SPG member). Gold and Platinum Starwood hotel members earn 5 Starpoints (an additional 1 point for being SPG Gold or Platinum).

Redeem Starpoints

Cardholders can redeem their Starpoints for free nights at Starwood hotels. Starwood divides its hotels into seven different categories. Stays in hotels in higher categories cost more points. A Category 1 hotel costs around 2,000 points for a weekend night stay, whereas a Category 5 hotel costs around 12000 - 16,000 points per night.

The Starwood Preferred Guest Card has an extra bonus for the more expensive Starwood hotels. When you redeem points for four nights at a Category 3 or higher hotel, you receive a fifth night for free.

Airline Rewards

In addition to its hotel rewards, the Starwood Preferred Guest Credit Card also offers airfare redemption options. You can transfer your Starpoints to over 30 airline frequent flier programs. There is no penalty or charge for this transfer and points are usually converted on a full 1:1 basis.

Each time you transfer 20,000 Starpoints to most eligible frequent flier programs, you receive an extra 5,000 point bonus. With this 25% point bonus, you collect reward miles faster on the Starwood card than on many other airline rewards cards.

Sign Up Bonuses

When you first sign up for this card, you also receive extra bonuses. You earn 10,000 Starwood points after your first purchase with this card, as well as another 15,000 bonus points when you make $5,000 in purchases using the card during the first 6 months after being approved for the card.

In addition, American Express waives the annual fee of this card for the first year. After the first year, this card has an annual fee of $65.

Pros

• Earns reward points for free Starwood hotel stays on all purchases, and extra points for purchases at Starwood hotels and resorts
  
• Generates bonus points in the first year of use: 10,000 bonus points after the first purchase and another 15,000 bonus points after using the card for $5,000 in purchases within the first 6 months
  
• Flexible point transfer program to over 30 frequent flier programs, with no fees or penalties on transfers; points mostly transfer on a 1:1 scale
  
• Gives 5,000 bonus points for every 20,000 points transferred to other eligible airline rewards programs
  
• No annual fee for the first year

Cons

• No introductory APR
  
• Annual fee of $65 after first year

Bottom Line

This is an excellent rewards card for travelers looking for free hotels or airfare. The Starwood Preferred Guest Credit Card earns free hotel stays quickly and generates air miles faster than many airline rewards cards.