I Spent $1,600 Buying Hotel Points. Here's Why

Buying any sort of travel points generally isn't recommended. For the most part, airlines and hotels charge much more than their points are worth. It doesn't make much sense to spend $300 on travel rewards that you'll only be able to redeem for $150.

But there are exceptions to the rule. For example, over the summer, I spent $1,600 buying Hilton Honors points. It goes against the conventional wisdom, but it ended up saving me over $800 on a hotel booking. If you like to pay for trips with travel rewards, here's why you shouldn't always rule out buying points.

Why I spent $1,600 on hotel points

My wife and I traveled around Europe this summer, staying in a mix of hotels and apartment rentals. When we stayed in hotels, I mostly booked Hilton properties. I had recently opened the Hilton Honors American Express Aspire Card, which includes complimentary Diamond status (terms apply). That meant free breakfast for two, access to executive lounges, and free upgrades when available (and they always were).

Since I knew we'd be staying in Hilton hotels, I looked into buying some points. Normally, this wouldn't be a good deal. The standard price for Hilton points is $0.01 per point, and I've found that they're worth about $0.005 per point.

However, I decided to buy them anyway for two reasons:

• Hilton was running one of its frequent promotions where you can get double points on a purchase. Instead of being able to spend up to $1,600 on 160,000 points, I spent $1,600 for 320,000 points.
• If you're a Hilton Honors member with Silver status or higher, your fifth night is free on award stays. You can book five nights for the price of four nights using points.

If you don't already have Silver status, it's easy to get. All the Hilton credit cards include Silver status or better. That includes the Hilton Honors American Express Card, which doesn't charge an annual fee (terms apply, see rates and fees).

Apply now for the Hilton Honors American Express Card.

A few days later, I booked a six-night stay at the DoubleTree by Hilton Amsterdam Centraal Station. Instead of paying 2,178 Euros (about $2,439 at the time), I used 300,000 points. I got a $2,439 stay for $1,600, saving $839, and I still had 20,000 points left over. Best of all, it was a beautiful hotel and an amazing stay.

How to decide if buying travel points is worth it

For the most part, it's better to earn points by paying for your purchases with travel credit cards. You save much more money using points you've earned through your regular spending than using points you've purchased. It's also easy to earn a lot of points, especially since many travel cards have big sign-up bonuses.

RELATED: Best Credit Card Sign-Up Bonuses

That being said, there are situations where buying points can work out in your favor. If you can save more using those points than you spend to buy them, then it's probably worth it. Here are a few signs that buying points could be a good idea:

• You have an opportunity to buy points with an airline or hotel loyalty program that you use regularly.
• There's a bonus available, or you've done the math and expect the points to save you more than they cost.
• You plan to use the points to book travel within the next couple of months.

That last part is especially important. I'd only recommend buying points that you're going to use in the near future. You save money with travel rewards when you use them. Before then, they don't do you much good -- it's not as if you can earn interest on them.

I wouldn't advise buying points to use at some unspecified point in the future. But if you can get a good deal on them and you know you'll use them soon, that's when buying points can pay off.