There can be competing effects. In fact, you can easily stop an hour glass from working at all by letting it be in free fall.
Assuming you mean "an hour glass at fixed altitude", it's rate decreases compared to an atomic clock colocated with it as you increase in altitude. This is because an hourglass (or pendulum clock) must be recalibrated for the local gravitational field strength.
Independent of that, all clocks in a gravitational field run slightly slow compared to clocks at infinity. So once you've recalibrated your hourglass to match a co-located atomic clock, it'll still be running slightly slow compared to a clock at infinity.
Essentially, the problem is, as Orodruin just said, that such "gravity powered" clocks are not reliable clocks if they are moved to different gravitational field strengths.