If you love staying in 5-star hotels but hate paying star prices, the right travel credit card can completely change the way you book your trips. In 2025, banks and travel brands are competing for frequent travelers by offering huge welcome bonuses, premium rewards, and luxury hotel perks for best travel credit cards for 5-star hotel bookings.
With the right card, you can turn normal spending into free nights, room upgrades, late checkouts, and VIP treatment at top hotels around the world. In this guide, you’ll discover:
- What to look for in a travel credit card for hotel bookings
- The main types of cards that work best for 5-star stays
- A realistic step-by-step strategy to save money on luxury hotels using points, miles, and rewards
Why Use a Travel Credit Card for 5-Star Hotel Bookings?
Before you book your next luxury stay, it’s worth understanding why a travel credit card is much better than using a basic card or debit card.
Earn Rewards on Every Hotel Booking
Every time you book a hotel online, you can earn:
- Travel points
- Airline miles
- Cash-back on travel purchases
Instead of getting nothing in return, you turn each booking into future discounts or free nights.
Unlock Free Nights with Welcome Bonuses
Many travel credit cards offer a welcome bonus when you spend a certain amount in the first few months. That bonus alone can often cover:
- 1–4 nights at a 5-star hotel, depending on the destination and program
If you time your application before a big trip, this can significantly cut the total cost of your stay.
Get Extra Travel Protection
Travel credit cards often include built-in protections like:
- Trip cancellation or interruption coverage
- Travel delay reimbursement
- Lost or delayed baggage benefits
- Purchase protection and extended warranty
If your plans change unexpectedly, these benefits can save you a lot of money and stress.
Enjoy VIP Hotel Perks and Elite Status
Some premium cards and co-branded hotel cards provide:
- Room upgrades (when available)
- Free breakfast
- Late checkout
- Priority check-in
- Bonus points on stays
These perks make your hotel stay feel more premium without paying extra.
5 Best Travel Credit Cards for Booking 5-Star Hotels Online
If you love 5-star hotels but hate paying full price, the right travel credit card can be your secret weapon. From free night certificates and bonus points on hotel bookings to elite status, late checkout, and room upgrades, the right card can easily save you hundreds (or even thousands) of dollars a year.
In this guide, we’ll look at 5 of the best travel credit card “types” for booking 5-star hotels online, how they work, and which kind of traveler each is best for.
Note: Exact card names, fees, and bonuses vary by country and bank. Always check the latest details on the issuer’s official site before applying.
What Makes a Credit Card Great for 5-Star Hotels? Before we dive into card types, here’s what really matters when you’re focused on luxury hotel bookings:
- High rewards on travel & hotels (e.g., 3x–10x points per dollar on hotel purchases)
- Strong hotel transfer partners (so you can move points to big hotel chains)
- Free hotel night(s) every year or via spending
- Automatic hotel elite status (late checkout, upgrades, free breakfast)
- Premium travel protections (trip delay, lost luggage, travel insurance)
- No foreign transaction fees (for international hotel bookings)
Now let’s break down 5 card categories that usually perform best for online 5-star hotel reservations.
1. Premium Bank Travel Cards (Flexible Points Powerhouses)
Best for: Frequent travelers who want maximum flexibility (hotels + flights + transfers).
These are the big flagship travel cards from major banks that earn flexible points you can redeem:
- Directly through the bank’s travel portal to book 5-star hotels (often with boosted value), or
- Transfer to hotel programs like Marriott, Hilton, Hyatt, etc., for outsized redemptions.
Why they’re great for 5-star hotels
- High earning rates on travel (often 3x–5x points).
- Flexible redemption: Book any hotel through the bank portal or transfer to hotel partners.
- Often include strong travel insurance and airport lounge access, making luxury trips smoother.
Typical perks you might find
- Points worth more than 1 cent each when redeemed through the bank’s portal.
- Transfer partners like Marriott Bonvoy, IHG One Rewards, Hilton Honors, World of Hyatt, etc.
- Credits for travel purchases, such as statement credits for bookings, dining, or rideshares.
- No foreign transaction fees, ideal for online international bookings.
Ideal use case
You want one powerful card where you can:
- Book 5-star hotels directly through the bank’s portal at boosted value, or
- Transfer points to a specific hotel chain when you find a sweet spot redemption.
2. Co-Branded Hotel Credit Cards (Marriott, Hilton, Hyatt, IHG, etc.)
Best for: Brand loyalists who usually pick the same hotel chain.
If you love a specific brand—like Marriott, Hilton, Hyatt, IHG and so on—a co-branded hotel card can be insanely valuable.
Why hotel cards are fantastic for 5-star stays
- High rewards at that hotel chain (e.g., 10x–17x points on stays).
- Automatic elite status (Silver/Gold/Platinum level or equivalent), which can include:
- Room upgrades
- Late checkout
- Free breakfast or lounge access (depending on brand & level)
- Annual free night award (often enough for a mid- to upper-tier hotel night).
- Extra perks like priority check-in or welcome amenity.
Perfect for:
- Travelers who frequently stay at one major luxury chain.
- People who want to unlock elite benefits without needing to complete dozens of nights per year.
- Those who like using hotel apps to book and then pay with their co-branded card for maximum points.
Example strategy:
Book a 5-star Marriott online using:
- Your bank travel card to earn flexible points, or
- Your Marriott co-branded card for maximum Bonvoy points + elite perks.
3. Premium “Luxury” Travel Cards (High Annual Fee, High Payoff)
Best for: Luxury travelers who want VIP treatment at 5-star hotels.
These cards usually come with higher annual fees, but they pack a lot of premium hotel perks that can easily justify the cost if you stay in 5-star hotels a few times a year.
Common benefits with luxury travel cards
- Hotel collection programs (e.g., “Fine Hotels & Resorts” or “Luxury Hotel Collection”) with perks like:
- Daily breakfast for two
- Room upgrades (when available)
- Late checkout
- Property credits (e.g., $100 spa or dining credit per stay)
- High points per dollar on travel and dining.
- Global airport lounge access, sometimes including extra guest access.
- Travel credits that offset the annual fee (e.g., annual travel statement credits).
Why they’re powerful for booking 5-star hotels online
When you book via the card’s special luxury hotel portal, you often get:
- Extra on-property credits (spa/dining),
- Enhanced VIP treatment,
- And still earn hotel loyalty points and elite nights in many cases.
Ideal for:
Travelers who book 1–3 luxury hotel stays per year and want upgrades, breakfast, and credits built into each booking.
4. No-Annual-Fee or Low-Fee Travel Cards (Beginner-Friendly Options)
Best for: Travelers who want travel perks but aren’t ready for big annual fees.
These cards may not have the over-the-top perks of premium cards, but they can still be great for booking hotels online, especially if you:
- Travel a few times a year,
- Want good earn rates on travel, and
- Prefer to avoid big yearly fees.
What they usually offer
- 2x–3x points on travel and restaurants.
- Either their own travel redemption portal or simple statement credits for travel purchases.
- Sometimes intro 0% APR offers (check details & conditions).
- Often no foreign transaction fees on travel-focused versions.
Why they work for 5-star hotels
You can still:
- Earn flexible or travel-specific points on your 5-star hotel booking.
- Redeem those points to offset the cost later (as a statement credit or portal redemption).
- Avoid paying extra fees when booking hotels internationally online.
Good for:
People just starting with travel rewards, or those who don’t travel enough to justify a premium card but still want some rewards and protections on hotel bookings.
5. Cash Back Travel Cards (Simple, Flexible, and Underrated)
Best for: People who value simplicity and want to reduce the cost of any 5-star hotel, not just certain brands.
Sometimes, the best choice is simply to earn high cash back and use it to pay for any luxury hotel you like—without worrying about point values and transfer charts.
Why cash back can be great for 5-star hotel bookings
- Straightforward value: 1 unit of currency is 1 unit of value; no mental math.
- Works with any hotel or OTA (Booking.com, Expedia, Hotels.com, direct hotel sites, etc.).
- Very easy to manage: swipe, earn, and apply cash back to your hotel purchase.
Typical perks
- Flat-rate cash back on everything (e.g., 1.5–2% on all purchases), or
- Elevated cash back on travel, dining, or specific categories.
- Some cards allow cash back as statement credit, so you can erase part of your booking cost.
Best for:
- People who don’t want to learn complicated points systems.
- Travelers who like switching between many different 5-star brands instead of sticking to one.
How to Choose the Right Card for 5-Star Hotel Bookings
Here’s a quick decision guide:
Pick a Premium Bank Travel Card if:
- You want flexible points you can use for both flights and hotels.
- You like transferring to different hotel programs depending on where you’re going.
- You frequently travel and can use extra perks like lounge access and credits.
Pick a Co-Branded Hotel Card if:
- You mostly stay with one big hotel brand (Marriott, Hilton, Hyatt, IHG, etc.).
- You want automatic elite status and hotel-specific perks.
- You’re happy to build your loyalty within a single ecosystem.
Pick a Luxury Travel Card if:
- You regularly stay in 5-star hotels and want:
- Free breakfast
- Room upgrades
- Hotel credits
- You can offset the high annual fee with credits + perks + rewards.
Pick a No-/Low-Fee Travel Card if:
- You don’t travel enough to justify a big annual fee.
- You still want a solid earn rate on travel and hotels, plus some basic protections.
- You’re just getting started with travel rewards.
Pick a Cash Back Travel Card if:
- You prefer simplicity over optimizing every point.
- You want to book any 5-star hotel you like, whenever, with no loyalty constraints.
- You value guaranteed, easy-to-understand savings.
Key Features to Look for in a Travel Credit Card for Hotels
Not all travel credit cards are equal. If your main goal is booking 5-star hotels, focus on these key features.
High Rewards Rate on Travel and Hotels
Look for cards that offer:
- Bonus points on travel purchases
- Extra rewards on hotel bookings
- Higher earning rates when booking through partner travel portals
This helps you accumulate points faster and reach free nights sooner.
Valuable Welcome Bonus
A strong welcome bonus can be worth hundreds of dollars in hotel stays. Before applying, check:
- How many points or miles you get
- The minimum spending requirement
- Whether you can realistically hit that spend with normal expenses
Strong Travel Insurance and Protections
When you’re booking expensive 5-star hotels, you want protection. Look for cards that include:
- Trip cancellation and interruption insurance
- Travel delay reimbursement
- Emergency assistance when traveling abroad
This kind of coverage can be especially useful if you’re planning non-refundable stays.
Flexible Transfer Partners
Some travel credit cards allow you to transfer points to:
- Hotel loyalty programs
- Airline miles programs
Transferring points can sometimes give you better value compared to using points directly.
Reasonable Annual Fee for the Benefits
Premium travel cards often have higher annual fees but also offer:
- Travel credits
- Free night certificates
- Lounge access
- Elite-like hotel benefits
Always compare the cost of the annual fee with the real value of the perks you will use each year.
Strategy: How to Use Travel Credit Cards to Save on 5-Star Hotel Stays
A card alone doesn’t save money—you need a plan. Here’s a simple, realistic strategy.
Step 1 – Apply for the Right Card Before Your Trip
Apply for a travel credit card with:
- A strong welcome bonus
- Bonus earning on travel or hotels
Do this 2–4 months before your luxury vacation, so you have time to:
- Reach the minimum spending requirement
- Collect the welcome bonus and extra points
Step 2 – Hit the Minimum Spend with Normal Expenses
Use your new card for:
- Groceries
- Online shopping
- Subscriptions
- Bills (where allowed)
Do not overspend just to hit the bonus. The goal is to use money you would spend anyway.
Step 3 – Stack Hotel Loyalty and Card Points
When booking a 5-star hotel:
- Join the hotel’s loyalty program (usually free).
- Book directly or via eligible channels to earn hotel points.
- Pay with your travel credit card to also earn card points.
You now earn two types of rewards from one stay.
Step 4 – Use Promotions and Booking Portals
Before confirming your booking, check:
- Bank or card travel portals for bonus point offers
- Any hotel promotions, such as double points or free nights
Timing your booking with these promos can significantly boost your rewards.
Step 5 – Redeem Points for Maximum Value
Not all redemptions are equal. Sometimes you get more value when:
- Transferring points to a hotel loyalty program
- Booking award nights during off-peak seasons
- Taking advantage of promotions like “stay 4 nights, get the 5th night free”
Always compare:
- The cash price of the room
- The number of points required
Then calculate the value per point. Choose the option with the highest value.
FAQs About Travel Credit Cards for Luxury Hotel Bookings
Do I need perfect credit to get a travel credit card?
No, but many of the best travel cards are designed for people with good to excellent credit. There are also starter travel cards with fewer perks but easier approval.
Are travel credit cards safe for hotel bookings abroad?
Yes. In fact, they are often safer than debit cards because of:
- Stronger fraud detection
- Better dispute and chargeback processes
- Sometimes virtual card numbers for online bookings
Can I use travel points for any hotel?
It depends on the card:
- Flexible travel cards can often be used at many hotels.
- Co-branded hotel cards work best for a specific hotel group.
Some people even carry both types for maximum flexibility.
Is it better to redeem points for flights or hotels?
It depends on:
- The cash price of flights vs hotels
- How many points each option requires
Simply compare the value you get per point and choose the better deal.
What’s the fastest way to earn a free 5-star night?
The fastest path usually includes:
- Applying for a travel card with a strong welcome bonus
- Using that card for all your major purchases
- Booking your hotel strategically during promos or off-peak times
With a solid plan, many travelers can earn a free or heavily discounted luxury night within a few months.
