Hyatt has released its 2026 hotel category changes, and while this happens every year, the implications are getting harder to ignore.
If this feels familiar, that’s because it is. Hyatt adjusts hotel categories annually, and last year alone, 118 properties moved up or down. Sites like One Mile at a Time and Frequent Miler have already broken down the full lists for 2026.
So the idea of category changes isn’t new.
What matters is which hotels are moving—and what those moves mean for the value of your points.
When Category Changes Actually Matter
Not all category shifts are equal.
A hotel moving from Category 2 to 3? That’s an incremental change. But when a hotel jumps from Category 4 to 5 (or 7 to 8), that’s where the real impact is.
Hyatt’s free night certificates are capped by category—not by a flexible point value like other programs. Once a hotel crosses that line, it’s no longer eligible. There’s no option to top off with points.
It’s simply gone from your list of options.
Two Moves That Say A Lot
This year, Hyatt is moving two particularly notable properties from Category 4 to Category 5—and they’re not random picks.
They’re two of the best uses of a Category 1–4 free night certificate.
- Hyatt Regency Jersey City – One of the closest points hotels to Manhattan, offering skyline views and easy access into the city.
- Hyatt Regency Grand Cypress – A longtime favorite just outside Walt Disney World, and one we’ve previously highlighted as a top use of a Category 1–4 free night.
That second one is the bigger loss.
I know plenty of people who keep the World of Hyatt Credit Card specifically to redeem their annual free night at the Grand Cypress. It’s one of the few places where that certificate consistently delivered outsized value.
And since free night awards with Hyatt waive resort fees, the redemption is even more appealing.
What This Really Signals
On their own, these changes might not seem dramatic.
But taken together—and viewed alongside the fact that Hyatt makes these adjustments every year—they tell a clearer story.
Hyatt is steadily removing some of the most valuable redemption options from the Category 1–4 range. It wasn’t that long ago that places like Gild Hall in Manhattan and the Grand Hyatt Washington, DC, were Category 4 properties.
And if that trend continues, the free night certificate risks becoming far less compelling—pushed toward lower-tier properties like Hyatt Place and Hyatt House locations, especially in the U.S.
There’s still value to be found, particularly internationally. But the days of reliably using a free night at high-demand or standout properties are getting harder to find.
Final Thought
Hyatt has long stood out as one of the more predictable and rewarding loyalty programs. But moves like this suggest they’re not drawing any firm lines anymore.
And if even Hyatt is willing to chip away at its most popular sweet spots, it’s a reminder that no part of a loyalty program is truly off limits.
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4 comments
I dont think people realize that when loyalty programs get involved with the credit card point transfer point options, the long term value of points must decease.
Customer who uses the (insert brand) co=brand card, the loyalty program usually collects a percentage of every transaction, may also collect some sign up bonuses, and even some of the annual or other fees. It’s a huge gain for the loyalty program. Plus they get the money/points every month as you earn them, and they also collect the “breakage”
When (insert brand) is part of a transfer program, the points are transferred only at the time the customer wants to use the points, they only transfer the exact (nearest 1000) points needed, and often get less cash per point than the cobrand card. There is virtually no breakage, no sign up bonuses to the loyalty program, and less value per point. Inevitably as these programs grow, the most valuable transfer partners (i.e. hyatt) get the most transfers. This results in points being devalued more quickly.
The Hyatt Regency Grand Cypress going from a 4 to 5 hits us pretty hard. We’ve consistently used our cat 1-4 awards here in the last 10 years when we’ve run out of DVC points. It’s a great hotel that’s a $10 Uber ride from basically anywhere on WDW property. We’ve kept the Chase Hyatt card specifically to use these certs here. After the recent devaluations, and the fact we’ve blown thru our 400k+ points on trips to Japan, Maldives, and Paris, our Hyatt cards are both getting the axe at the next AF renewal.
All things change in the miles and points game, but 2026 has been a pretty rough year for Hyatt loyalists.
I am very much less enamored with Hyatt after the release of the new award chart. Yes, they have some lovely properties, but Hyatt has a relatively small footprint. I’ll continue to earn Chase Ultimate Reward points, but am shifting my paid business back to Hilton.
Just wait until you see the new award schedule with 5 categories on May 20th. I’ve booked every Hyatt stay I can plan through next February already to avoid a significant increase. As you know, even without changing categories the average price in points of a stay likely goes up 15-20% as of May 20th using the middle award level of the current chart compared to the middle award level of the new one.