I Never Used to Get Hotel Credit Cards. Here's Why I Changed My Mind

I've been a fan of travel rewards credit cards for a long time. I use them for practically all my bills, and then pay for as much travel as I can using my points. For anyone who travels regularly, credit cards like these can save you quite a bit of money.

There is one type of travel card that I was never that keen on, though. Hotel credit cards didn't seem like they offered much value. With many of them, your points aren't worth that much, so you need to accumulate a large amount to book award stays. And if that hotel chain isn't available where you're going, then your hotel card isn't going to be all that useful.

After recently opening a hotel card with a $450 annual fee, I'm happy to admit that I was wrong. While I wouldn't use one as my only travel card, they can provide lots of value for the right cardholder.

It's all about the high-value benefits

The main reason I wasn't sure about hotel cards is the rewards. I prefer more versatile travel points. Instead of points I need to use at a hotel, I like cards that let me transfer my rewards to many different airlines and hotels.

With the best hotel credit cards, it's not really about the rewards. Sure, you can earn points to redeem for free stays. But the real value in these cards is all the other features, which can include:

• Free night certificates
• Elite status in the hotel's loyalty program
• Property spending credits

Here's a rundown of how these benefits work and why they're so valuable.

Free night certificates can save you hundreds per year

Many hotel cards with annual fees offer a free night certificate every year. That makes it extremely easy to make your money back, and much more, with your card. As long as you stay at that hotel at least once per year, you're probably going to get your money's worth.

Let's say that a hotel card has a $95 annual fee. If it also has a free night certificate you use at a $250 per night hotel, you come out ahead by over $150. Free night certificates from more expensive cards can often be used at even higher-end hotels, potentially saving you $500 to $1,000.

Elite status means more savings and a better hotel experience

Many hotel cards also include complimentary elite status in the hotel's loyalty program. The membership tier depends on the card. Credit cards with higher annual fees tend to offer higher status tiers.

Exact benefits depend on the hotel and the status tier, but here are some of the most common:

• Free breakfast
• Early check-in*
• Late checkout*
• Room upgrades*
• Free wifi or premium internet

*When available

Benefits like these can also help you save. For example, meals are usually one of the biggest extra travel costs, after airfare and a place to stay. Free breakfast, especially when you're traveling with someone else, could mean not spending $40 to $60 on breakfast every morning of your trip.

Premium hotel credit cards may offer spending credits

The most expensive hotel credit cards usually have spending credits you can use every year. These may include credits at that hotel's resorts, other types of properties, or even credits on other travel expenses, such as airline fees.

Credits like these can make up for the cost of an annual fee. If you're able to use all your card's spending credits, you may even come out ahead -- and that's before taking into account all your card's other benefits.

For hotel chains with large footprints, there are plenty of opportunities to use hotel card benefits

My other quibble with hotel credit cards was that you're out of luck if the hotel doesn't have any properties where you're traveling. This is true, but with major hotel brands, it's not much of an issue.

In my case, I have Hilton credit cards. Hilton has over 6,400 properties, so in most of the destinations I visit, there are at least a few Hilton hotels available. The same is true with brands like Marriott (over 7,300 hotels) and IHG (over 6,000).

A hotel credit card can be a fantastic pickup for frequent travelers

As I mentioned earlier, I wouldn't use a hotel card as my only travel card. To have more flexibility, I still think it's good to have a card with transferable rewards, like a card in any of these rewards programs:

• Chase Ultimate Rewards
• American Express Membership Rewards
• Capital One Venture Rewards

If you don't mind carrying multiple travel credit cards, and you stay in hotels often, then a hotel card is well worth considering. All the benefits they offer can help you score some big savings and have a better time on every hotel stay.