If you’re calculating the rate of mileage accrual vs. Starpoints, you are trading up by choosing the Nights & Flights option rather than transferring all of your points to airline miles.
There is, of course, one exception to consider: if hotel rates are particularly cheap, it’s better to book with cash and transfer your Starpoints to airline miles. When is it better to go this route? The general valuation of Starpoints is 2.2 cents each. So if a Category 3 hotel costs over $154 mid-week, it’s best to redeem Starpoints for such a hotel stay. If it costs less than that, your Starpoints are better redeemed as airline miles. In cases like these, it’s a good idea to have a stash of Arrival Miles on hand so you can redeem them for paid stays. This way, you’re making good use of Starpoints as well as increasing your airline mileage balance. Ultimately, it takes a bit of planning and thought to determine which redemption option is best. However, doing so ensures that you are getting the most value possible out of your points and miles. While Nights & Flights offers better value, it’s of no use to someone who does not want to stay at a Starwood property in a particular destination. However, for those who are simply interested in maximizing their point balances, the above chart will hopefully make that easier.
Read more at: SPG Nights & Flights: Better Than the Airline Transfer Bonus? | Frugal Travel Guy
http://www.travelcodex.com/2016/04/maximize-spg-awards-using-nights-flights-redemptions/
http://millionmilesecrets.com/2013/08/19/nights-and-flights/
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