The turning point of the Hyatt transfer: Sapphire Reserve versus Sapphire Preferred

Chase recently announced several changes to the Chase Sapphire Preferred® Card (see rates and fees).

Most of those the changes are positivewhich includes a larger annual hotel credit and additional 3 points per dollar bonus categories (all while maintaining a low annual fee of $95). However, one change stands out for travelers who regularly transfer Chase Ultimate Rewards points to World of Hyatt.

Starting June 15 for new cardholders and October 1 for existing cardholders, transfers from Sapphire Preferred to Hyatt will decrease from 1:1 to 4:3.

The change also applies to the Ink Business Preferred® Credit Card (see rates and fees), although Ink Business Preferred cardholders won’t see the new transfer rate take effect until October 1.

He Chase Sapphire Reserve® (see rates and fees) and Reserve Chase Sapphire for Business℠ (see rates and fees) will continue to offer 1:1 transfers to Hyatt.

And fortunately, due to some eligibility changes earlier this yearnow you can have a Chase Sapphire Preferred and You will still be eligible to get the welcome bonus at Sapphire Reserve.

This raises an obvious question: At what point is it worth paying Sapphire Reserve’s higher annual fee simply to preserve Hyatt’s pass-through value?

Related: Who is eligible for the 150,000 Chase Sapphire Reserve point bonus?

How much does a Hyatt transfer change actually cost?

So, armed with all this news, it’s the right time to take a real look at your actual Hyatt transfer patterns and see if it would be better for you to add the Chase Sapphire Reserve to your wallet.

The timing is particularly relevant right now because the Chase Sapphire Reserve currently offers its Highest Welcome Bonus Ever: Earn 150,000 bonus points after you spend $6,000 on purchases in the first three months.. This offer ends at 8 a.m. ET on June 15.

while I transfer Chase points to Hyatt several times a year, many cardholders likely won’t do this, so this won’t be a big change for everyone.

Let’s see how many points you would need to transfer annually before the Reserve starts earning on a purely mathematical basis.

To do this, we have to make some assumptions.

I will use TPG from June 2026. valuation of 2.05 cents per Chase point and we assume a $400 effective annual fee difference between the two cards.

I arrived at that figure by taking the Sapphire Reserve’s $795 annual fee, subtracting the Sapphire Preferred’s $95 annual fee, and then subtracting the total value of the Sapphire Reserve $300 Annual Travel Credit.

I am intentionally ignoring the value of Other benefits of Sapphire Reserveas I think it’s reasonable to assume that someone who cares enough about Hyatt transfers to make this comparison will have no problem using the full travel credit of up to $300.

Focusing solely on the difference in Hyatt transfer fees makes this a deliberately conservative comparison.

Breakeven point: about 60,000 Hyatt points per year

Here’s why:

• Chase Sapphire Reserve with a 1:1 transfer ratio: 60,000 Chase points = 60,000 Hyatt points
• Chase Sapphire Preferred with a 4:3 transfer ratio: 80,000 Chase points = 60,000 Hyatt points

In other words, once the new transfer rate goes into effect, Sapphire Preferred cardholders will need to transfer an additional 20,000 Chase points to generate the same 60,000 Hyatt points.

For context, 60,000 Hyatt points are typically enough for about three nights at resorts like the Hyatt Regency Grand Cypress in Orlando or the Hyatt Regency Hill Country Resort and Spa in San Antonio, although the price of rewards varies by property and date, especially after some of the changes that the world of Hyatt experienced Just a few weeks ago.

Using TPG’s valuation of 2.05 cents per Chase point, those 20,000 extra points are worth $410. Which is essentially the same as the $400 annual fee difference used in this analysis. As a result, approximately 60,000 Hyatt points per year become the break-even point.

In a nutshell

If you regularly transfer 60,000 points (or more) to Hyatt, then the recent changes to Sapphire Preferred make a compelling argument for taking the Sapphire Reserve.

On the other hand, if you typically transfer only, say, 30,000 Hyatt points or less each year and want to keep your annual fees low, the math may still favor sticking with the Preferred sapphire and its $95 annual fee, especially if you don’t expect to get much value from Sapphire Reserve’s other benefits.

In my case, I have received more than $2,220 in value only from Sapphire Reserve credits over the last year, so the card easily justifies its annual fee to me even before taking into account the Hyatt transfer perk.

Lounge access, travel credits, earning rates and other benefits play a role in determining which card is best for you. But if Hyatt is one of your top Chase transfer partners, the new 4:3 transfer ratio creates a clear benchmark: Around 60,000 Hyatt points per year is where the Sapphire Reserve starts to become significantly more attractive.

Of course, Hyatt transfers are only part of the equation. Determining which card is best for you takes a lot more than just one factor, so here’s our full review of the Chase Sapphire Reserve and our full review of Chase Sapphire Preferred to help you make the right decision for your lifestyle.

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last chance Chase Sapphire Reserve: Earn 150,000 bonus points after you spend $6,000 on purchases in the first three months. This offer ends at 8 a.m. ET on June 15.

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