Ritz Carlton Rewards Credit Card Review – Is it Worth the Large Annual Fee?

11

New people are being targeted for Amex Platinum 100K – Check now!

Never miss out on the latest news & deals! Join over 7,000 people subscribed to our daily newsletter and join the rapidly growing MtM Facebook community!

Ritz Carlton Rewards Credit Card Review

The forgotten brand in the recent SPG & Marriott merger is Ritz Carlton.  They have a rewards program that is somewhat separate from Marriott but still a part of it.

Ritz Carlton, like Marriott, offers a co-branded credit card issued by Chase bank.  The Ritz Carlton Rewards credit card comes with a large annual fee but a ton of perks.  The question is whether or not those perks offset the annual fee.

Current Sign Up Bonus Vs All Time High

The current sign up bonus is:

  • 2 Free Nights at a Category 1-4 Ritz Carlton Hotel
    • After $4,000 in spend within the first 3 months of opening the card

The Ritz Carlton Rewards credit card has offered 3 nights in the past. It has been a while since we have seen that offer.  They also offered 140,000 Marriott points as the sign up bonus back in 2014.  It is one of Mark’s biggest regrets, missing out on that offer.

Ritz Carlton Rewards Credit Card Review

Bonus Restrictions

The Ritz Carlton Rewards credit card does NOT fall under the dreaded Chase 5/24 rule.  While it doesn’t fall under the rule remember that it does count towards your 5/24 count.

If you are close to being under 5/24 or you are currently under 5/24 then you may want to hold off applying for this card.  It would be better to get one of the cards that fall under the 5/24 rule first and come back to this one.

Chase also has a 24 month rule for every credit card:

This product is not available to either current cardmembers of this credit card, or previous cardmembers of this credit card who received a new cardmember bonus for this credit card within the last 24 months.

It is worth noting that Chase has been shutting down accounts of people with too many recent applications and for people with to much credit available to them across all banks.  These are two things to be aware of before applying.

Earning Structure

The Ritz Carlton Rewards card comes with the following earning structure:

  • 5 points per $1 spent at participating Ritz-Carlton, Marriott, and SPG hotels.
  • 2 points per $1 spent on airline tickets purchased directly with the airline, and at car rental agencies and restaurants.
  • 1 point per $1 spent on all other card purchases.

Cardmember Perks

This card comes with a large annual fee but also with a lot of perks.  They are as follows:

  • $300 Annual Travel Credit (per CALENDAR year)
    • use for baggage fees, seat upgrades, access to your preferred airport lounge and more. Simply call to apply the credit.
  • Save $100 on the total cost of between 2 and 5 qualifying round-trip, domestic coach airline tickets purchases on the same itinerary.  You must book the flights through their portal which can be found HERE.
  • Upgrade to The Ritz-Carlton Club Level 3 times annually on paid stays of up to 7 nights
  • No foreign transaction fees
  • $100 hotel credit toward dining, spa or other hotel recreational activities on paid stays of two nights or longer
  • Gold Status for the first year.  You need to spend $10,000 per year to maintain the status after the first year.
  • Earn Platinum status if you spend $75,000 within the cardmember year
  • Priority Pass Select Membership
    • 1 Guest allowed per visit
    • Authorized Users get their own PP membership card and can also bring a guest
  • $100 Global Entry application fee statement credit

DIRECT APPLICATION LINK

Ritz Carlton Rewards Credit Card Review

Fees

The Ritz Carlton Rewards credit card comes with a $450 annual fee which is NOT waived.

Sign Up Bonus Value – $600 ($150 Net)

This bonus is hard to quantify since it is not points based.  We decided to base it on the points cost of a category 3 hotel (50,000 points per night).  This is based on a valuation of Marriott Rewards points at $0.006 a piece.  If you use it at a category 4 hotel the value would increase by another $120.  If you use it at a category 2 hotel the value would decrease by $120 etc.

Once you subtract the $450 annual fee which is NOT waived you get a net value of $150.  This does not factor in the $300 annual airline fee credit.

Summary

As you can see the sign up bonus isn’t super lucrative and this card is more about perks and getting maximum value from those. Although it is believed that it will be possible to use the 2 free nights at ANY SPG, Marriott, or Ritz Carlton property in the coming months.  The loophole won’t last long though.

The sign up bonus may have a higher valuation to you if you base it on actual room rates.  We think basing it on point valuations is the better gauge of value since you can use Marriott points to stay at Ritz Carlton properties.

You need to call or send in a secure message to get the airline credits posted.  This seems like an unnecessary step that Chase puts in there in the hopes of creating breakage.  Reports have stated that it is a pretty painless process and they tend to approve anything that “codes” properly.  A valuation of 85% of the credit is probably accurate since it is not as easy to use as Chase Sapphire Reserve’s credit.  You are able to get the credit twice in the first cardmember year since it is based on the calendar year cycle.  That should net you $510 in value (based on an 85% valuation).

The other perk people like to take advantage of is the $100 credit on roundtrip domestic coach flights.  A total of 2-5 cash tickets need to be booked to use the credit.  It is best to use this perk on itineraries of 2 people to maximize the discount.  Since you have to pay with the Ritz Carlton card and can not use a more lucrative option or discounted gift cards it shouldn’t be valued at the full $100.  Having said that if you can use this perk often it could offset a large portion of the annual fee, if not the entire thing.

Ritz Carlton Rewards Credit Card Review

Long Term Keep or Cancel?

This is a tough card to pin down as a long term keeper.  It is right in the middle in terms of value.  If you are able to maximize the perks then you will get more value than the annual fee.  If you don’t use the perks then the card is not a long term keeper because the earning structure is lackluster.  Some people keep it because of the ease of obtaining Gold Status after $10,000 in yearly spend.

We value the airline credit at $255.  The Priority Pass membership and Global Entry credit are offered by just about everybody these days so we won’t include them in our value calculations. Although you may find value in the fact that authorized users also get a Priority Pass membership.  We value $100 airline credit at $90 per use since you are locked into using the Ritz Carlton credit card when making the purchase.  The club upgrades are useful if you usually have cash stays at Ritz Carlton.  The same goes for the $100 property credit. This will probably not be the case for most people.

If you are able to use the $100 airline discount at least 3 times per year then you are getting more value from the card than the cost of the annual fee.

DIRECT APPLICATION LINK

Conclusion

The Ritz Carlton Rewards credit card comes with a decent sign up bonus (which could be great), a lot of perks, but a lackluster earning structure.  The card is best for perk seekers and not a card to be used for everyday spend.

If you are able to maximize all that the Ritz Carlton Rewards credit card has to offer then it could be a long term keeper.  The key is using the $100 airfare discount multiple times and maxing out the airline incidental credit.

The card offers a lot of value the first year but whether or not you should keep it past that will depend on how much value you get from the perks.  The large annual fee will make this tough to accomplish but there is opportunity there.

 

Do you have the card?  Have you kept it past the first year?  If yes let us know why.

 


This post may contain referral, affiliate or sponsor links that provide Miles to Memories compensation. Thank you for your support.


The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed bu the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

11 COMMENTS

  1. The sign up value is grossly undervalued in your review (with all due respect) … I used the two nights at the Ritz in Maui Hawaii , and was upgraded to a suite because of the card and the value of each night was 1239.00…. I stay pretty regularly at Ritz properties and using the 3 upgrades each year can easily save you hundreds of dollars each visit because Ritz club level offers 3 food offerings plus unlimited wine and booze ….

    • When it is a free night cert I tend to value it based on the points valuations because using example bookings is anecdotal. I would rather under promise then over promise. I also realize that not everyone will use it at a Cat 4 so I settled on using a points valuation based on a Cat 3 and then offered the difference if they went up or down a level.

      Since Ritz is tied with Marriott and SPG you can book these points hotels quite easily and don’t really need the free night cert. A Marriott sign up would get you 2 nights at a Category 3 Ritz Carlton but nobody is going to base the sign up bonus for that card based on the room rate of a Cat 3 Ritz. The most these certs are worth is 120,000 points (2 nights in a category 4) which has a going rate of $720 in points.

  2. I’ve been a loyal Ritz Card holder now for almost 5 years and it is a terrific value. The $300 annual airline credit is far easier to apply than the Platinum Amex card as it can be used for upgrades. The Club upgrade certs which can be used for a stay of 7 days or less per certificate is potentially worth $2,100 per year. The $100 credit for a two night stay at a Ritz is a nice benefit as well as the club upgrade certs. I’ve never used the $100 airline credit when buying tickets for 2 people as the Platinum Amex Travel Concierge value is better IMO. If you don’t stay at Ritz Carlton hotels, then there are other card options out there.

  3. The priority pass included is actually much better than with other cards – not only is at least one guest free, but so is adding authorized users of the ritz card, each of whom also gets their own pp card and can bring their own guests. This is one of my favorite cards overall due to the perks. Also got over $1500 value including a suite upgrade with the free night certs.

  4. The $100 credit on two-night paid stays at the Ritz Carlton can only be applied if you book it through Ritz telephone line and pay the standard rate. Discounted rates do not apply.

  5. I applied this month and was approved for the Ritz card. I think another bonus is if you apply before August 1, you should receive Platinum Elite status until February 2020. Also, if you manufacture spend, it is not too difficult to maintain Platinum Elite with $75,000 annual spend. When you consider that Platinum Elite gets you free breakfast and lounge access at numerous hotels, especially SPG hotels, this packs a lot of value.

LEAVE A REPLY

Please enter your comment!
Please enter your name here