Cents Per Point (CPP)
Cents per point (CPP) is the standard measure of redemption value: divide the cash price of a booking (minus taxes and fees) by the points used, then multiply by 100. A $400 hotel night booked for 20,000 points equals 2.0 CPP; anything above 1.5 CPP generally beats cash back.
CPP answers one question: was this redemption worth it? Because every program prices awards differently, CPP is the common denominator that lets you compare a Hyatt night against a United flight against plain cash back.
The formula. CPP = (cash price − taxes and fees you'd still pay) ÷ points × 100. Always subtract award taxes: a "free" flight with $180 in surcharges is not free.
Example with 2026 numbers. A Hyatt Category 1 hotel starts at 3,000 points under the 5-tier chart introduced May 20, 2026. If the room sells for $120, that's ($120 ÷ 3,000) × 100 = 4.0 CPP — an exceptional redemption. By contrast, redeeming Chase points in the travel portal without a Points Boost offer yields a flat 1.0 CPP.
Benchmarks. Under 1.0 CPP: poor (gift cards, merchandise). 1.0-1.5: acceptable. 1.5-2.0: good. Above 2.0: excellent, usually via transfer partners.
Common mistakes: valuing against inflated rack rates you would never pay in cash, and ignoring taxes and fees on award tickets — both inflate CPP and lead to bad decisions.