Get a 25% bonus when transferring Amex Membership Rewards to Hilton Honors, but is it worth it?

5d ago

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Every once in a while, a transfer bonus comes along wherein you can earn extra points for transferring from one currency to another. This time around, American Express is offering a 25% bonus when you transfer your Amex Membership Rewards points to Hilton Honors points.

Normally, Membership Rewards points transfer to Hilton Honors points at a 1:2 rate, meaning you’d get 1,000 Honors points for every 500 Amex points transferred. However, with this 25% transfer bonus, the ratio improves to 2:5.

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In other words, for example, for every 5,000 Amex Membership Rewards points you transfer, you’ll get 12,500 Hilton Honors points deposited into your account.

(Image courtesy of American Express)

You have to transfer a minimum of 200 Amex points in order to take advantage, and you must also transfer points in increments of 50.

There’s a maximum transfer of 499,950 points, and you must complete the transfer before the promotion ends at 11:59 p.m. GMT on 15 December 2020.

The transferred points should appear in your Hilton Honors accounts within five working days but could take up to two weeks.

Is it worth it?

A 25% transfer bonus is certainly better than nothing, but it’s not reason enough to head to transfer your entire points balance. We occasionally see higher transfer bonuses with some currencies, so it could be worth waiting to see if a larger offer comes along.

Based on TPG U.K.’s current valuations, Amex Membership Rewards points are worth 1.4p apiece, while Honors points are worth a fraction of that — just 0.4p apiece.

Let’s take, for example, the value — based on TPG U.K.’s valuations — of a transfer of 15,000 Amex Membership Rewards points to Hilton Honors with this 25% bonus:

Value of 15,000 Amex Membership Rewards points Amount of Hilton Honors points received with 25% bonus Value of Hilton Honors points received Loss of value
£210 37,500 £150 28.5%

As you can see, you’re losing value if you transfer your Membership Rewards points to Hilton Honors — even with this 25% bonus.

That being said, if you have a very specific use for the potential Hilton Honors points you would get as a result of the transfer, now could be a good time to make it. A bonus — albeit small — is better than no bonus at all.

Related: Get 30% extra Avios on hotel point transfers, but is it worth it?

Should you transfer points now?

Generally, we recommend only transferring your points if you have an immediate use for them. With the travel industry turning to rewards programmes to drum up cash, promotions like these could spell out devaluations in the future. Transfers are irreversible, so you don’t want to be stuck with thousands of points in a programme you have little use for.

If you don’t have a specific redemption in mind but still want to earn miles, you’re likely better off earning points and miles through credit card welcome bonuses and everyday spending.

How can I earn Membership Rewards points?

American Express Membership Rewards points are one of the most valuable in the U.K. That’s because they’re a transferable currency, meaning you can use the points with any of American Express’ airline and hotel partners.

Related: The ultimate guide to U.K. Amex Membership Rewards

The fastest way to rack up a big stash of American Express Membership Rewards points is by taking advantage of welcome bonuses that come with its credit cards. Keep in mind, however, that Amex has strict restrictions on who’s eligible for welcome bonuses in the U.K.

If you determine that you’re eligible for a welcome bonus from Amex, these are the best cards that will earn you transferable Membership Rewards points:

Benji Stawski contributed to this story.

Featured photo of Conrad Bora Bora by Summer Hull/The Points Guy.

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