Hilton announced this morning that it is launching two new credit cards in its partnership with American Express, as well as revamping the benefits on two existing credit cards. As part of this refresh, Hilton will be entering the ultra-premium credit card category that started with the American Express Platinum Card and has seen new entrants such as the Citi Prestige, Chase Sapphire Reserve, and Chase Ritz-Carlton Rewards credit cards.
I will be devoting most of this post to discussing the new Hilton Honors American Express Aspire Card because it has the most generous features and — I think — offers the best value to readers of this blog. Be sure to read on for more details about all four cards and how this might affect your strategies to earn and redeem Hilton Honors points. I’ve also summarized and compared the new card portfolio at the end of this post.
New cards will launch early next year in January, and existing Hilton credit cards will be upgraded at that time. Any current Citi Hilton credit cards will also be converted to American Express cards; Amex is purchasing these accounts from Citi to provide continuity to cardholders.
Hilton Honors American Express Aspire Card
The most exciting news is the Hilton Honors American Express Aspire Card, which will have a $450 annual fee much like many other ultra-premium credit cards. However, I think it does a better job than most at delivering a return on this upfront investment.
Cardmembers can look forward to a $250 annual airline fee credit and a $250 annual Hilton resort credit. By themselves these return more value than the card’s annual fee. But there will also be an opportunity to earn a $100 property credit any time you book select package rates at Conrad or Waldorf-Astoria hotels.
Best of all: the Aspire Card includes complimentary Hilton Honors Diamond status!
A variety of other benefits make this the most rewarding Hilton credit card. Not just a high earning rate, with 14 points per dollar at Hilton’s portfolio of hotels, but also complimentary Priority Pass lounge access, a free weekend night each year (valid at most hotels), and the opportunity to earn a second weekend night after spending $60,000 in a year.
Hilton Honors American Express Card and Hilton Honors American Express Ascend Card
The current Hilton Honors Card from American Express will be rebranded as the Hilton Honors American Express Card (no surprise), and the Hilton Honors Surpass Card from American Express will be rebranded as the Hilton Honors American Express Ascend Card.
The benefits of these two cards, if you’re already familiar with them, will not change much from before. The major changes are the elimination of foreign transaction fees, as well as new benefits for the premium card product. The new Ascend Card will also include 10 annual Priority Pass entries and one free weekend night after spending $15,000 in a year.
I think it’s great that Hilton and American Express found a way to increase the value delivered by these cards without diminishing existing perks and with no increase in the annual fee. The Surpass/Ascend Card has long been a popular choice because it includes complimentary Hilton Honors Gold status (which includes benefits like free breakfast and internet access) for just a $95 annual fee. You’ll still be able to earn 12 points per dollar at Hilton hotels and 6 points per dollar at U.S. grocery stores, restaurants, and gas stations.
Hilton Honors American Express Business Card
Finally, Hilton is also releasing its first business card. The Hilton Honors American Express Business Card will offer similar benefits to the Surpass/Ascend Card but with category bonuses that better match typical business purchases. For example, expect to get 6X points on shipping costs, car rentals, and tickets purchased directly from the airline or from amextravel.com, but no bonus at grocery stores.
Comparing These Cards
I created this table to help you get a quick overview of the new credit card portfolio. There are already some great offers available for the current cards, such as 75,000 bonus points after spending $3,000 within the first three months after opening a new Hilton Honors Surpass Card. You can apply for those now and look forward to the new benefits when these are re-branded later. The new cards, including the Business Card and the Aspire Card, will not be available until January — and I was unable to get any details on what kind of promotional bonuses might accompany them.
| Hilton Honors American Express Card | Hilton Honors American Express Ascend Card | Hilton Honors American Express Aspire Card | Hilton Honors American Express Business Card |
|---|---|---|---|
| 7X at Hilton hotels | 12X at Hilton hotels | 14X at Hilton hotels | 12X at Hilton hotels |
| 5X at U.S. grocery stores, U.S. restaurants, and U.S. gas stations | 6X at U.S. grocery stores, U.S. restaurants, and U.S. gas stations | 7X for tickets booked with airlines or amextravel.com, select car rentals, and U.S. restaurants | 6X at U.S. gas stations, U.S. wireless telephone service, U.S. shipping costs, U.S. restaurants, tickets booked with airlines or amextravel.com, and select car rentals |
| 3X everywhere else | 3X everywhere else | 3X everywhere else | 3X everywhere else |
| No foreign transaction fees | No foreign transaction fees; 10 Priority Pass lounge entries; One free weekend night after spending $15K |
No foreign transaction fees; Unlimited Priority Pass lounge entries; One free weekend night every year; Second free weekend night after spending $60K |
No foreign transaction fees; 10 Priority Pass lounge entries; One free weekend night after spending $15K; Second free weekend night after spending $60K |
| Silver status included; Gold status after spending $20K |
Gold status included; Diamond status after spending $40K |
Diamond status included | Gold status included; Diamond status after spending $40K |
| No annual fee | $95 annual fee | $450 annual fee; $250 airline fee credit; $250 Hilton resort credit; $100 property credit for booking select rates at Conrad or Waldorf-Astoria |
$95 annual fee |
My Discussion with Mark Weinstein
I had the opportunity on Monday to speak with Hilton’s SVP of Customer Engagement, Loyalty, and Partnerships to learn more about this exciting announcement and ask some pointed questions on how Hilton hopes to differentiate its co-branded credit cards in a crowded marketplace. This Q&A is paraphrased, so I am not using quotation marks, but I think the spirit of the discussing carries through.
What motivated the decision to launch a new premium credit card?
Hilton spent a lot of time with its members and customers trying to determine, if you love Hilton, how can these customers get more benefits? There was an unoccupied niche in the market and we wanted to make sure we had an ultra premium card that could compete. These are the most benefits we’ve ever offered with a credit card.
The included Diamond status is one obvious way to differentiate the Aspire Card from other Hilton co-branded American Express cards. Are you concerned about the value you offer to customers who continue to earn status the hard way?
Value comes to Hilton in a lot of different ways. Sometimes it means a lot of nights. Sometimes it means more stays. Some customers spend a lot. You see that already in the variety of the brands in our portfolio. That nature is already in the program.
Hotels are different than airlines. We have almost unlimited capacity to take care of our best customers. We have a lot of opportunities to find an upgraded room or deliver amenities at check-in. It is not like having a fixed supply of first class seats.
Do you think a co-brand arrangement helps or hurts your value proposition compared to other premium cards that rely on transferable points, like the Amex Platinum Card or Chase Sapphire Reserve?
It depends on what you’re trying to achieve. This is designed for the customer that really loves Hilton. And I can tell you there is no other card that offers this many benefits for a customer who loves Hilton and Hilton Honors.
How do you expect the business card to complement other Hilton Amex cards? Do you expect some cannibalization as some small business owners move purchases from their personal cards?
These benefits are designed to be complementary to each other, so we can see an opportunity to get both cards. There are different spending categories and you have opportunities to get an additional free night award. What you really get with the business card is access to the OPEN network, including other discounts.
Conclusion
Overall I think these are some great changes. Some perks, like the remove of foreign transaction fees, were a long time coming for the two existing cards that will be re-branded. I’m glad to see that Hilton and American Express were able to make the Ascend Card even better by adding free Priority Pass lounge access and the chance to earn a free weekend night. The Business Card also makes sense and matches what I would expect to see as a modified version of the Ascend Card.
The Aspire Card is what’s really impressive. Mark mentioned that this is the card for frequent travelers and the person who loves Hilton. But frankly, I can’t see any reason not to get it. The various credits easily make up for the annual fee. The extra benefits like Priority Pass lounge access can add significant additional value. And who wouldn’t want to have top-tier status at a hotel without worrying about qualifying nights or minimum spend?
An obvious criticism is that we’ll see an increase in the ranks of Hilton Honors Diamond members. No doubt. But I think Mark’s point is correct, that hotels have the flexibility to recognize many more guests than do airlines. Furthermore, if a person stays at Hilton infrequently, how much are they really taking away from the guests who earn it the hard way? There’s no point to having status if you don’t use it, and the ones who use it often will still be giving their business to Hilton and will be recognized for it. I think this card is a win-win all around.
