How Do Hotel Credit Cards Work?

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If you frequently stay in hotels — especially one particular hotel chain — then a hotel-branded credit card can help you maximize your travel rewards with easy points, free nights, and more. 

But how exactly do hotel credit cards work? Can you only use them at one specific hotel chain? What do the points and benefits look like, and can you still score rewards without paying an annual fee?

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The Basics of Hotel Rewards Credit Cards

Hotel credit cards function exactly like regular rewards cards but with two key differences:

• They generate hotel points instead of regular credit card points (e.g., IHG One Rewards instead of Chase Ultimate Rewards®)
• Their perks tend to be hotel-specific, like instant status, a free night on your card anniversary, etc.

For example, the Marriott Bonvoy Boundless® Credit Card is a Visa, so it can be used pretty much anywhere.

But its welcome bonus, rewards, and benefits are all Marriott-specific, such as automatic Silver Elite status (which includes priority late checkout and 10% bonus points on stays) and an annual Free Night Award on your account anniversaries. 

LEARN MORE: Marriott Bonvoy Boundless® Credit Card

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That’s not the only Marriott card on offer, either — there’s also the no-fee Marriott Bonvoy Bold® Credit Card, the mid-range Marriott Bonvoy Bevy™ American Express® Card, and the premium Marriott Bonvoy Brilliant® American Express® Card. 

LEARN MORE: Marriott Bonvoy Bold® Credit Card

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LEARN MORE: Marriott Bonvoy Bevy™ American Express® Card

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LEARN MORE: Marriott Bonvoy Brilliant® American Express® Card

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Needless to say, as you go up the food chain, the hotel-specific benefits get even spicier. The Marriott Bonvoy Brilliant card, for example, offers instant Platinum Elite status, a $300 dining credit, and more. 

As another example, the no-fee Hilton Honors American Express Card only comes with complimentary Silver status, while the mid-range Hilton Honors American Express Surpass® Card gives you Gold status, plus several other Hilton perks and the ability to earn points faster.

LEARN MORE: Hilton Honors American Express Card

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LEARN MORE: Hilton Honors American Express Surpass® Card

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How To Use Your Hotel Rewards Card Benefits 

Once you get your hotel credit card, be sure to link it to your account for that chain’s loyalty program. (If you don’t have a loyalty account already, set one up.)

Then, use your card like you would any other credit card to earn points on everyday spending. Those points can then be used to redeem for free or discounted nights, or other hotel perks. 

Whenever you book a hotel stay, be sure to use that card. Most hotel credit cards earn the most points for purchases at their hotel, so that’s where you’ll rack up the most value.

READ MORE: How To Get the Most Out of Credit Card Points

Pros and Cons of Hotel Credit Cards

Despite their generosity, hotel rewards cards still have pros and cons to consider before getting one. 

Pros

• High welcome bonuses: Even no-fee hotel rewards cards can offer welcome bonuses worth several free nights at a four-star property. 
• Amplified earnings: Some hotel credit cards can help you earn up to 26 points per dollar spent at the hotel, as well as generate points on gas, dining, travel, and more. 
• Automatic status: Most hotel cards give you an instant status boost — and in some cases, you’ll reach a status high enough to earn free room upgrades. 

Cons

• Points and benefits tied to one hotel chain: If you have a zillion IHG points but the conference you’re going to is at a Hilton property, you’re out of luck. 
• No cash redemption value: Unlike regular credit card points, there’s no official way to redeem hotel points for cashback when you need it. 
• You’ll have to pay a fee for the best perks: The best hotel credit cards tend to come with annual fees — and remember, you’re probably paying for perks with only that hotel chain, versus a fee-based general travel card that earns more flexible rewards.

READ MORE: How To Travel for Free with Credit Cards

Are There Any No-Fee Hotel Rewards Cards? 

Yes, and many are very generous, such as the IHG One Rewards Traveler Credit Card

Other no-fee hotel rewards cards include the Hilton Honors American Express Card, the Marriott Bonvoy Bold® Credit Card, and the Wyndham Rewards Earner card. 

LEARN MORE: IHG One Rewards Traveler Credit Card

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Which Hotel Rewards Card Should You Get? 

If you plan to book a hotel this year, there’s very little downside to applying for a hotel rewards card (especially if it has no annual fee) and scoring some easy free nights. 

The right hotel rewards card for you will be the one that: 

• Ties to a hotel brand you use often. If you rarely stay at a Hilton, then a Hilton card isn’t for you.
• Has a welcome bonus you can easily get without overspending. For example, five nights after spending $2,000 within six months is far more affordable than five free nights after spending $10,000 in six months.
• Has an annual fee you can tolerate. Annual fees can range from $0 to over $600. Consider how much you can afford and calculate how much value you’ll get from the card — does it outweigh the fee?
• Offers benefits and rewards you’ll actually use. For example, if you only travel domestically, you may not care if the card charges foreign transaction fees.

COMPARE: Best Hotel Credit Cards

FAQs

Which hotels have credit cards?

Marriott, Hilton, Hyatt, Wyndham, Choice Hotels, and IHG all have at least one rewards credit card to offer. 

Best Western used to have one, but it stopped accepting new applications in 2024. 

Can you use a hotel credit card with any hotel?

While you can use a hotel credit card to book almost any hotel, the points and benefits will be tied to one specific hotel brand. 

For example, you can use an IHG One Rewards Traveler card to book a Hilton hotel — and you’ll even earn IHG points for doing so — but you can only use those points at an IHG-branded property. 

Are hotel points transferable?

Generally speaking, no. Once they’re Hilton Honors points, they’re Hilton Honors points forever. Same goes for IHG One Rewards points, World of Hyatt points, etc.

That said, you can redeem most hotel points for more than just hotel stays, albeit at a lower redemption rate. For example, you can redeem Marriott Points for cruises, flights, and car rentals. 

TL;DR: Are Hotel Credit Cards Worth It?

If you’re loyal to a particular hotel, a hotel credit card could help you save some cash and score stellar perks on your next stay — like late checkout, elite status, and free nights.

The downside is that the points you earn are tailored specifically to that hotel and likely can’t be used as cashback — so you want to make sure you’ll get the most out of the perks to justify an annual fee, if there is one. 

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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.