How World of Hyatt’s 2025 Category Changes Impact Point Redemptions

World of Hyatt has announced the annual adjustments to its hotel categories for 2025, a change that significantly impacts point redemption costs for travelers utilizing the loyalty program. As of 8 a.m. CDT, on March 25, 2025, 151 properties will see changes in their category status. Of these, 78% will experience an increase in category, thus requiring more points for reservation redemptions. However, for the remaining 22%, the category decrease will mean fewer points are needed, providing some much-needed relief in this annual shake-up.

Noteworthy among the upgrades are luxury destinations such as the Andaz Tokyo and Grand Hyatt Kauai, both escalating to Category 8 status. Meanwhile, properties like Hyatt Regency Maui and Park Hyatt Doha will offer more affordable point options due to category downgrades. This shift is especially pivotal in regions like Japan and Southeast Asia, where award price surges are prevalent, contrasting with beneficial decreases seen in select areas of California, China, and the Middle East. These adjustments underscore the dynamics of hotel occupancy and average daily rates, driving changes primarily where properties have high rates combined with substantial occupancy.

Our Take

Hyatt’s annual category adjustments for 2025 present a mixed bag for travelers. While the increased category ranks for over 100 hotels might initially appear daunting, it’s essential to consider these changes within the broader context of global hotel pricing trends. Rising cash rates in many locations, particularly among luxury leisure properties, have necessitated the points increase as an adaptive measure for Hyatt’s loyalty reimbursement model. Therefore, while the points now required for a vacation at these upgraded properties have climbed, the redemption rate hikes only mirror the inevitable rise in cash prices.

Despite the increases, Hyatt continues to show transparency by maintaining a clear award chart—a significant advantage over other programs with dynamic pricing structures. This provides a level of predictability, despite the changes, that allows members to plan more effectively. We encourage travelers to move quickly: securing bookings before March 25th can ensure you lock in lower points rates amidst these changes. Additionally, it’s wise to focus on the properties downgraded in categories for future trips to maximize the value of your reward points.