After years of pouring over Mexican resort options, one property kept surfacing on my radar — The Cape, A Thompson Hotel. Ever since Hyatt brought Thompson Hotels under its wing in 2018, this boutique gem in Cabo San Lucas has stood out as an refined alternative to the area’s party-heavy reputation. With its sleek rooftop lounge offering panoramic Pacific Ocean sunset views, and the tranquil Currents Spa promising indulgent treatments, The Cape seemed to strike the perfect balance of luxury without pretension.

Some suites even boast private plunge pools, ocean-facing balconies, and butler service, making it an ideal retreat for couples seeking high-end comfort with a relaxed vibe. It had long been on my shortlist, waiting for the right moment.

That moment arrived this past July, when American Airlines rolled out an irresistible promotion of deeply discounted award redemptions to Mexico. For flights between September 2025 and May 2026, there was wide-open availability from several U.S. cities to popular destinations like Cancun, Monterrey, Cabo San Lucas, and Mexico City. One-way economy tickets started at just 8,000 miles, while business class tickets started at only 20,000 miles one-way.

With free cancellations on award bookings, I didn’t hesitate. I locked in my flights and finally set my sights on a stay at The Cape.

Airfare

Round Trip Between Chicago and Los Cabos

I zeroed in on a winter escape to Cabo, with February emerging as the ideal time. As advertised, economy flights could be booked for just 8,000 miles one-way. However, at only 20,000 miles for a one-way business class ticket, I couldn’t resist. I jumped at the opportunity to redeem those extra miles and fly in comfort and style!

For comparison’s sake, I ran a search using my planned dates to see what the cash price would be, and the results were staggering. Two round trip business class tickets rang in at an eye-popping $2,468.

That made the redemption feel like an absolute steal, especially with American Airlines’ free cancellation policy on award bookings. From a value perspective, redeeming 80,000 AA miles, instead of paying $2,468, works out to about 3.1 cents per mile. That’s essentially double the typical redemption value of around 1.4 to 1.5 cents per mile!

I still had to pay $307 out of pocket because award tickets for flights to Mexico from the United States are subject to a 7.5% U.S. federal excise tax. Nonetheless, I saved $2,161 on business class flights!

Hotel

The Cape, A Thompson Hotel

Since The Cape was the inspiration for this trip, I didn’t need to shop around for a hotel. As a Category 6 property in the World of Hyatt program, The Cape carries serious luxury credentials. And the price tag reflects it with a midweek 4-night stay ringing in at a whopping $3,670.

Of course I wasn’t about to pay that! Thanks to a healthy stash of Hyatt points I’d transferred from Chase Ultimate Rewards, originally earmarked for trips that never materialized, I was sitting on a redemption opportunity too good to pass up.

I redeemed 35,000 Hyatt points per night, for a total redemption of 140,000 points. From a value perspective, that works out to 2.6 cents per point — well above the reasonable redemption value of around 1.7 cents per point.

Finally putting those points to use felt like a win on multiple fronts. We’d be getting a luxury stay without the sting of the price tag, and a satisfying payoff for some earlier travel pivots.

In the end, our 4-night stay at The Cape was booked with 140,000 Hyatt points instead of shelling out $3,670 in cash. While I’ll likely still be on the hook for some local taxes and destination fees, the overall savings are substantial.

Cabo San Lucas 2025 Redemption Table

	Retail Cost	Our Cost	Miles and Points Used	Points Source
2 round trip tickets from Chicago (ORD) to Los Cabos (SJD)	$1,234 per person ($2,468 total)	$307 taxes and fees	80,000 AA miles	- Citi AAdvantage credit cards - AAdvantage eShopping - Simply Miles
4 nights at The Cape, A Thompson Hotel	$917.50 per night + taxes ($3,670 total)	$0	140,000 Hyatt points	- Chase credit cards
Total	$6,138	$307	- 80,000 AA miles - 140,000 Hyatt points	- $5,831 in total savings - 95% off retail cost

Bottom Line

By redeeming Hyatt points and taking advantage of an American Airlines promotion, I managed to save 95% off the retail cost of this trip by using points and miles. Besides saving almost $6,000, I also got great value from my points and miles redemptions.

Trading points for paradise? That’s a win I’ll take every time.

Trip Report Index

1. Using Points and Miles to get to Cabo San Lucas
2. The Cape, A Thompson Hotel