Last month, American Express added a new transfer partner: The Leading Hotels of the World’s Leaders Club loyalty program.
You can now transfer American Express Membership Rewards points to your Leaders Club account at a 4:1 ratio. And while this may look like a less-than-rewarding option on paper, it actually may represent the single best use of Amex points for hotel stays — given that redemptions through Leaders Club can start below 3,000 points per night.
Unfortunately, there is a small catch with these awards: You’re required to pay any applicable taxes and fees.
Thankfully, there’s an easy way to check on this before you actually transfer your Amex points.
Here’s what you need to know about this exciting new option.
How to find taxes and fees with Leading Hotels of the World
If you’re considering transferring your Amex points to Leaders Club, you’ll want to know about any out-of-pocket expenses you’ll incur. And unfortunately, this won’t display if you have an insufficient balance of points.
For example, here’s a four-night stay at the Ritz Paris next summer for 40,251 points per night.
As you can see, I can’t select the redemption rate since I don’t have enough points in my account to cover the entire stay.
So, how do I know what I’d need to pay in taxes and fees? Well, I’d simply select the standard paid rate instead. When I do so, the platform will display the total taxes and fees associated with my stay.
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In this case, it’s 93.50 euros in city tax (or roughly $108, based on current exchange rates). That’s about $27.10 per night.
And, sure enough, if I reduce my stay to just a single night — for which I do have enough points — I see that exact amount reflected.
Just make sure you’re selecting the regular refundable rate for a paid stay. This could be listed as “best available rate” or “standard rate”; be sure to avoid ones like “Leaders Club exclusive” or “advanced purchase.” In our dozens of searches, the taxes and fees on the standard or best available rate map directly into the redemption rate (or are within a few dollars).
Taxes and fees can vary significantly
Of course, paying $20 or $30 a night isn’t a huge cost. In the example above, the city tax at the Ritz Paris accounted for less than 1% of the room’s base rate. Unfortunately, there’s a lot of variability across LHW’s portfolio — even in the exact same city.
For example, Fouquet’s Paris bundles that city tax into its room rate, so Leaders Club redemptions at the property don’t have any separate taxes and fees to worry about.
However, Fauchon L’Hotel Paris charges a value-added tax as a separate item, which means a redemption stay here would incur an additional 89 euros (about $103) per night on top of your points.
And some spots with significant local tax burdens can charge even more in taxes and fees.
Take New York City as an example. There are six LHW properties in the city, and all of them impose high occupancy taxes on redemption stays. The exact breakdown varies, but expect to pay approximately 13% to 15% of the standard rate.
Perhaps the most egregious example is The Huntington Hotel in San Francisco. On a redemption stay there, you’ll incur an occupancy tax, a local and convention tax, a tourism fee, a residential fee and a residential fee tax.
This amounts to roughly 20% of the paid rate.
However, some resorts, like Bairro Alto Hotel in Lisbon, charge nothing extra.
Be sure to verify these amounts before you transfer your Amex points.
Bottom line
The new partnership between American Express and Leading Hotels of the World opens up some great redemption opportunities. However, many hotels charge additional taxes and fees for award stays.
To figure out how much you’d need to pay at a specific property, search for paid stays and select the best available or standard rate.
Remember, too, that those with the American Express Platinum Card® or The Business Platinum Card® from American Express can unlock complimentary Sterling status in the Leaders Club program (enrollment required). It includes additional benefits such as prearrival upgrades and bonus points. Just note that redemption stays aren’t eligible for these upgrades.
