Look, I’ll be honest with you—when I think “InterContinental,” my brain doesn’t exactly jump to “budget-friendly.” I mean, we’re talking about an IHG luxury brand here, the kind of place where I’d usually just walk through the lobby to use the bathroom and then shuffle back to my $40-a-night hostel down the street. But here’s the thing about travel hacking that I’ve learned over eight years of doing this: sometimes the fanciest option is actually the cheapest one. Yeah, I know that sounds backwards. Trust me, it surprised me too.

Let me tell you about the time I ended up staying at the InterContinental San Diego for less than what I’d normally pay for a decent mid-range hotel, and how you can pull off the same thing without selling a kidney or maxing out your credit cards.

How I Accidentally Discovered This Hotel Hack

So there I was, planning a trip to San Diego last spring to visit my college roommate Sarah. I’d been doing my usual thing—checking Hostelworld, browsing Airbnb, even considering sleeping on Sarah’s couch (which, let’s be real, I’ve done before and her cat absolutely hates me). I was pretty much resigned to spending about $120 a night for something basic in a decent location.

Then I made the mistake of opening my email while procrastinating on actually booking anything. There was this notification from IHG Rewards about a points promotion, and I suddenly remembered I’d been hoarding points from a few work trips I took back when I was still in corporate marketing. I’m talking like three years ago, before I quit to do this whole travel blogging thing full-time. I logged into my account expecting maybe enough points for, I don’t know, a free breakfast or something.

Turns out I had 85,000 points just sitting there. And the InterContinental San Diego—this gorgeous bayfront property that normally runs $300+ per night—was bookable for 40,000 points. Per night. I actually did the math three times because I was convinced I was reading it wrong.

The Real Cost Breakdown (And Why Hotels Can Beat Hostels)

Here’s where it gets interesting. That same week in San Diego, here’s what I was looking at for accommodations:

A hostel bed in the Gaslamp Quarter was running about $45-50 per night. Sounds cheap, right? Except I’d probably need to eat out more because no kitchen access, and honestly, at 32, sharing a room with six strangers who may or may not respect quiet hours has lost some of its charm. A budget hotel near the airport (because those are always the cheapest) was $95 per night, plus I’d need to factor in Uber costs to actually get anywhere interesting—probably another $20-30 daily.

The InterContinental? Using points, it cost me literally zero dollars. Even if I’d paid cash at the points rate, it would’ve been around $250-280 per night. But here’s the kicker—by using my IHG credit card for everyday purchases over the previous year (groceries, gas, my Netflix subscription, pretty much everything except rent), I’d racked up enough points without even trying.

The location alone saved me a fortune. Right on the waterfront, walking distance to the Embarcadero, the Gaslamp Quarter, and Little Italy. No Ubers needed. The room had a mini-fridge where I stored breakfast stuff from Trader Joe’s. And the free gym meant I didn’t need to pay for a yoga class to work out the kinks from my terrible travel posture.

My Strategy for Snagging Luxury Hotels on a Budget

Okay, so you’re probably thinking “cool story, Ava, but I don’t have 85,000 IHG points lying around.” Fair point. Let me break down how I actually built up that stash without spending any extra money.

First off, I got the IHG Rewards Club Traveler Credit Card about four years ago. The annual fee is $99, which I know sounds like a lot, but stick with me. The signup bonus alone was 60,000 points after spending just $2,000 in the first three months. That’s literally just normal spending—groceries, gas, bills, whatever. I put everything on that card and paid it off in full every month (because credit card interest is the enemy of budget travel, trust me on that one).

Then there’s the everyday earning. You get 5 points per dollar at IHG hotels (obviously), 2 points per dollar at gas stations, grocery stores, and restaurants, and 1 point everywhere else. I’m not suggesting you change your spending habits, but if you’re buying groceries anyway, why not get points for it? Over a year, that adds up faster than you’d think.

IHG also runs these promotions constantly—like, almost embarrassingly often. “Stay two nights, get a third free” or “Earn double points on weekend stays.” I keep an eye on the IHG Rewards app and plan my trips around these deals when possible. Last year I stayed at a Holiday Inn Express in Austin for a wedding and got triple points because of some random promotion they were running. Boom—12,000 points from a two-night stay I was making anyway.

The InterContinental San Diego Experience (And What Made It Worth It)

Let me paint you a picture of why this particular property is kind of perfect for the budget-conscious traveler who occasionally wants to feel fancy. The lobby has this modern, airy vibe with floor-to-ceiling windows overlooking the bay. When I checked in, they upgraded me to a bay-view room—probably because I had some elite status from those old work trips, but I’ll take it.

My room was on the 15th floor, and honestly, waking up to watch the sailboats in the harbor while drinking terrible instant coffee I’d packed from home was pretty magical. The bed was one of those cloud-like situations that made my usual hostel bunk feel like sleeping on a wooden plank. I may have taken a completely unnecessary second shower just because the water pressure was that good.

But here’s what really sold me on the value proposition: the location meant I could walk everywhere. I hit up Little Italy for cheap eats at the farmer’s market, strolled through Seaport Village (free entertainment, folks), and made it to the USS Midway Museum without spending a dime on transportation. The hotel itself was right next to a trolley stop, so when I did want to venture further, it was like $2.50 for a day pass.

The free WiFi was actually fast—revolutionary concept, I know. I got some writing done overlooking the bay, which was way more inspiring than working from my usual coffee shop back home. Sometimes investing in a nice environment actually makes you more productive. Or at least that’s what I told myself.

When Luxury Hotels Actually Make Financial Sense

Here’s something I’ve learned that most budget travel guides won’t tell you: sometimes splurging on accommodation saves you money overall. I know that sounds like something a luxury travel influencer would say to justify their expensive habits, but hear me out.

In San Diego, staying at that waterfront InterContinental meant I didn’t need to rent a car ($50+ per day), I wasn’t constantly Ubering around ($15-30 per trip), and I had access to a business center, gym, and other amenities I would’ve otherwise paid for separately. The breakfast wasn’t included with my points stay, but the in-room coffee maker and mini-fridge meant I could do my own breakfast for like $3 instead of $15 at a café.

Plus—and this is totally a personal thing—but staying somewhere nice occasionally keeps me from burning out on budget travel. I’ve spent enough nights in hostels with paper-thin walls and questionable shower situations to know that sometimes you need a reset. A couple nights in a comfortable hotel with a actual good mattress and reliable hot water can recharge your batteries for months of shoestring travel.

The key is being strategic about it. I don’t stay at luxury hotels for every trip (I can’t, even with points), but for cities where location really matters and where I’m planning to work remotely, it often makes more sense than the “cheapest option available” strategy.

How You Can Pull This Off (Without a Fortune in Points)

Alright, so let’s say you want to try this approach but you’re starting from zero points and maybe don’t even have a travel credit card yet. Here’s my realistic game plan for you.

Start by checking what points you might already have. Seriously, log into every hotel rewards program you’ve ever signed up for. I once found 15,000 Marriott points I’d completely forgotten about from a work conference in 2016. Free money is free money, even if you forgot you had it.

If you’re willing to get a hotel credit card, compare the signup bonuses. IHG often offers 80,000-100,000 points for new cardholders, which is enough for 2-3 free nights at mid-tier properties or one night at a luxury hotel. Just make sure you can hit the spending requirement without buying stuff you don’t need, and for the love of all things holy, pay it off every month.

Book strategically. IHG properties use dynamic pricing for points, meaning off-season or weekday stays cost fewer points. That same InterContinental room that’s 40,000 points on a Tuesday in May might be 70,000 points on a Saturday in July. Flexibility is your friend here.

Combine points with paid nights during promotions. Sometimes IHG runs “book three nights, fourth night free” deals. If you’re planning a longer stay anyway, mixing a couple paid nights at a cheaper IHG property (like a Holiday Inn Express) with your points at a nicer one can maximize your value.

My Biggest Takeaway (Besides That Amazing Shower)

Look, I’m not saying you should abandon hostels or budget hotels entirely. I stayed at a $25-a-night place in Bangkok last month that was perfectly fine, and I’ve had some amazing experiences in hostels where I met lifelong friends. But I am saying that luxury hotels aren’t automatically off-limits for budget travelers.

The InterContinental San Diego taught me that with a little bit of planning and points strategy, you can occasionally experience the nicer side of travel without wrecking your budget. It’s about being smart with your resources—whether that’s money, points, or time.

These days, I try to mix it up. I’ll do a week in hostels, then use points for a couple nights somewhere nice. Or I’ll stay at a budget place for most of my trip and splurge on one special night at a property with a view. It keeps travel interesting and reminds me that budget travel doesn’t have to mean suffering through every uncomfortable experience possible.

If you’re planning a San Diego trip, seriously consider whether the InterContinental might actually work out cheaper than you think, especially when you factor in location value and the money you’ll save on transportation. At the very least, download the IHG app and check out their current promotions. You might surprise yourself with what’s actually affordable.

And hey, even if the luxury hotel thing doesn’t work out, San Diego has plenty of great hostels and budget hotels too. The fish tacos are cheap and amazing regardless of where you sleep.

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