The Hilton HHonors card has been unique amongst hotel loyalty programs in that they have two credit card relationships. However, that is about to change as the Hilton HHonors card goes exclusive in 2018.
For a long time now, the Hilton HHonors credit card has been issued by both Citi Bank and American Express. However, come January 1, 2018, that will no longer be the case. From that date on, the Hilton HHonors card goes exclusive with American Express.
A Big Win for American Express
This announcement seems to have come out of nowhere. But, we’ve known for some time now that Amex’s agreement with Hilton was up for renegotiation. And since Citi recently won the exclusive rights to the Costco Card (and acquired the entire portfolio) it makes sense that Amex would try to gain exclusivity with the HHonors product. Even if we eliminate Citi from the equation, simply losing the Costco program cost them dearly. So being able to gain exclusivity with another product, such as the Hilton HHonors card, should help them rebuild their portfolio.
How the Cards Compare
Both Amex and Citi offer two flavors of the HHonors card. And while the products are similar, they’re also quite different at the same time. Here’s how they compare:
With HHonors awards nights costings as much as 95,000 points per night, the Citi HHonors Reserve card clearly has the better signup bonus. Plus, the Reserve card awards an annual free weekend night if you spend at least $10,000. That being said, the Amex Surpass is definitely the card you’d want to carry and use. Not only does the Amex have better earn rates, but the annual fee is significantly less too.
What Will Happen to the Citi HHonors Cards?
What Citi will do with its HHonors portfolio hasn’t been decided yet. Option 1 would be for Citi to simply reissue another one of their card products to current cardholders. Option 2 would be to sell the HHonors card portfolio Amex, allowing current cardholders to remain a HHonors credit card. However, it’ll be some time before we get any answers. In fact, I wouldn’t expect to hear any details on what will happen to existing accounts until at least the fourth quarter of this year.
Hilton HHonors Card Goes Exclusive Final Thoughts
While American Express’s announcement was a surprise, the fact that they’d want to gain exclusivity with Hilton shouldn’t be. Is it ironic that Amex’s exclusivity deal is affecting Citi? Perhaps, or perhaps not. What is apparent, though, is those thinking of applying for the Citi Reserve card should do it soon. Its only a matter of time till Citi pulls its applications.
This, of course, presents a dilemma for myself. I’m currently a Citi AAdvantage Platinum World Mastercard and Citi AAdvantage Amex cardholder, but have been thinking of closing these cards. However, instead of closing the accounts, I’ve been thinking of converting them to other Citi products instead, including the Citi Reserve card. Yes, I know I won’t get the signup bonus by converting, but these Citi AAdvantage accounts are my 2nd and 3rd oldest accounts, and have my highest credit limits. So closing the accounts isn’t an option from a credit score perspective. What to do? Fortunately, I’ve still got some time to think about it… And think about it I will! I’ll provide an update once I make a decision.