The SPG Amex card has long been a staple in the travel hacking world. People love their SPG points, as well as their Starwood status. SPG points are one of the hardest points currencies to accrue given that you can only earn points either by staying in hotels or earning 1x on the credit card, but people laud the numerous airline transfer partners of the program and the fact that 20k SPG points gets you 25k miles. Thus, many say that SPG points are some of the most valuable points around.
SPG points are definitely valuable, and I would happily take them if someone were to offer them to me. The category 1 and 2 hotels can often be an incredible redemption value (e.g. Le Meridien Chiang Mai), and the flexibility in terms of airline partner transfers can be very helpful. But I don’t think it’s correct to think of earning 1 SPG point as equivalent to earning 1.25 airline miles, which is one of the reasons why people love the program.
You only get the transfer bonus if you transfer SPG points in increments of 20k points. This is a huge drawback in my eyes. 20k SPG points is a lot of points for the layperson to earn (of course, if you’re actively MSing a lot per month, 20k SPG points is nothing, but at that point, you’d probably prefer cash back to points). You can get 25k-30k as a sign-up bonus, and then that’s about it. If you travel for work frequently, you can supplement your points there by staying in their hotels, but otherwise, it’s a long slog to get to your next 20k increment.
And since you only get the bonus if you transfer in 20k increments, I imagine that a lot of people don’t want to transfer unless they have 20k points to transfer at a time, which means that their points will likely sit there unused when they could be put to better use. The numerous airline partners is one of the biggest benefits of the program, as you can “top off” a program when you’re close to an award, but the structure of the incentive means that people probably don’t use it this way as often as they should.
Yes, SPG points are valuable, but given how difficult they are to accrue as compared to other transferable points currencies like Ultimate Rewards, Membership Rewards, and Thank You Points, I don’t think it’s right to take the 25% transfer bonus to airline partners at face value.