Are expensive hotels “that much better” to justify their extra cost? A modest price over cheaper accommodations may buy you a better stay, but once you get past a few hundred dollars does the extra money really buy you very much?
I think there’s a lot of nuance to this, and I don’t spend $600 or more out of pocket on room nights myself though I regularly redeem points for hotels that cost far more than this. My controversial take is that I do feel that they can deliver a lot for the money! But I’m still reluctant to spend that money myself. I haven’t hit my savings goals yet!
I don’t stay in the world’s most exclusive hotels. I’ve certainly stayed in some of the better chain hotels, like the Park Hyatts in the Maldives; Tokyo; New York; Sydney; St. Kitts; DC; San Diego (Aviara); Buenos Aires; Paris; Dubai; Abu Dhabi; Siem Reap and more. I’ve stayed in nicer Ritz-Carltons.
Overwater Villa, Park Hyatt Maldives
Hyatt’s SLH partnership opened up redemptions for some special properties – I’d have never stayed at a $1600 per night hotel on Grace Bay Beach otherwise. Now SLH is the best thing about Hilton Honors.
Point Grace, Turks & Caicos
As with this property, part of what you’re often paying for is location. At the Park Hyatt Sydney you’re looking right on at the harbor, directly at the Opera House.
View From Park Hyatt Sydney
I’ve never spent $700 cash per night on a room. In fact, thinking back on spending $600 per night it was at a truly peak period and I leveraged it with a second night free certificate that made my average cost more reasonable. I’ve never stayed at an Aman Resort.
So maybe I just don’t see what some people do. At the same time, it’s really the same question I answer for myself all the time about points hotels. Is a 40,000 point hotel worth it, when you can get a nice place for 20,000 points?
Park Hyatt St. Kitts, Deluxe Suite Plunge Pool
Of course the question applies beyond just hotels,
- “I can why you would choose to fly business class over coach. What I don’t understand is spending even more for first class. How could first possibly be that much better?”
- “I understand why you would choose a $60,000 car over a $30,000 car. What I don’t understand are $120,000 cars. How could they possibly be that much better?”
- “I understand why you would spend $800,000 on a house over a $400,000 one. What I don’t understand are $3 million homes. How can they possibly be that much better?”
I’ve Twice Stayed In Conrad Bora Bora’s Villa 105
‘There are always tradeoffs, values are subjective, and it depends on what margin.’ Of course, better hotels will usually provide larger and more comfortable beds, though honestly I’ve always slept well in a Sheraton Sweet Sleeper.
They’ll pay greater attention to details like blackout curtains. You’ll often have larger bathrooms and strong water pressure out of multiple showerheads. How much do these things matter depends on you.
I’m not going to argue that having a second housekeeping service at turndown, where bottles of water are placed by the bed and a treat and glass of dessert wine are left for me to find when I come in are worth $300 each day as such! But it does create a sense of tranquility and being cared for.
Evening Turndown Treat At Park Hyatt Chicago
In general I think some of the most important elements of a great hotel that commands a price premium and feels worth it.
- Effortlessness: you’re not waiting on staff, staff are waiting on you. Any requests are handled promptly and without follow up. Ideally you don’t even need to make the request at all, because they’ve anticipated what you might need (easier to do than you think, even for a first-time guest, as many guests aren’t as unique as they might imagine).
- Design and sense of place: the best spot on the best beach or most convenient location with the best view, all wrapped up in a thoughtful location that brings both calm and wonder. If you’re looking out over the city, the windows are large giving you a commanding view, and maybe there’s a comfortable piece of furniture in the window so you can work there… with a table beside you and a power outlet. Or maybe the hotel itself was once a special place that’s been repurposed, a fort or a castle.
- Space and serenity: there are likely fewer people around, so that it’s a place you retreat from the world at the end of your day or a place you can find some peace before it begins.
- Discrete service: everything is just handled, correctly, in the background.
Park Hyatt New York Suite Living Room
When the binding constraint isn’t dollars but time, and you don’t want to spend precious time or effort on the details of each moment of your stay then spending money for other people to think through those things for you is valuable!
Ultimately though prices vary, even for the best places. During peak times around popular events even hotels that are quite mid might charge over $600, while during off periods or even shoulder season you may get a hotel that ‘charges’ $600 – $900 for perhaps $300. Las Vegas is notorious for wide variances in rates and midweek the Conrad hotel there has had suites available for under $200.
When I stayed at the Park Hyatt Chennai my room rate was less than $100, and spa treatments were less than $40 per hour. It wasn’t the most polished Park Hyatt, but my status included free breakfast – in the restaurant or via room service. Unlimited South Indian cuisine delivered to me, complimentary, had to be the best elite benefit ever!
Do you think that expensive hotels (whether in money or points) are worth the extra cost? Why, or why not?
Gary you had it right several times calm effortless retreat attended to etc
Money can be earned but even one day of cal effortless attended to retreat … priceless
And high priced hotels earn that price for different reasons. Some people also don’t want to be around people who aren’t at their lot in life, demand privacy / discretion , and hotel price offers a selection mechanism as well. Others want personal attention, time saving, and pure reliability that isn’t offered elsewhere. A lot of the higher priced hotels earn it based on a reputation of consistency – a bad experience is rare.
Others have a coveted and rare view or location.
We almost always upgrade with points or certs for hotel stays.
But, lately we seem to be staying at properties that we cannot secure a “for sure” upgrade without paying hard dollars.
I’m convinced it’s worth it for me to stay at a hotel that has a window on the city or natural wonder we’re staying at. I think about Niagara Falls and Iguazu Falls or the Westin in Paris with views of the Eiffel tower and Louvre as best examples.
We’re staying in Sydney at the IHG. I have Diamond Elite and ambassador status, but the only way I could guarantee a room with a view of the Opera House was to pay an extra $500 a night on top of the 190000 IHG points. Seems well worth it.
But, we’ve hit our number, so we have plenty of discretionary income.
https://en.wiktionary.org/wiki/discreet
https://en.wiktionary.org/wiki/discrete
Some things, are beyond the realm of dollars and cents.
The accountant in you has prevented you from understanding many things about life.
You, clearly don’t get it. And may never will. And that’s fine as long as you don’t judge those who do. And likewise is also true.
They seldom are in my experience. Unless they have a stunning view. They Pyramids, BoraBora, Venice canals, Maybe.
I’ve had some very very memorable stays in small & mid-sized towns thru out Europe, North, Central & South America. Excellent food, comfortable rooms & you don’t feel like you’re being fleeced or held hostage.
Cost is not perfect but sometimes a useful filter of the patrons. Not that people are nicer, but hopefully they have enough awareness to keep the distance. Combined with a smaller room count and larger staff to customer ratio, hopefully we can at least buy some peace when traveling. I know it sounds bad – why don’t we simply stay at home, why bother with going to places at all! Fair enough, but I guess we just cannot help ourselves
Hotels, yes.
Chain hotels, hell no. And that includes pseudo-luxury like Hyatt.
One upgrade I would gladly pay for is a room not next to or across from the elevator or ice machine. Other than that, location matters, whether it’s housing or hotels, and that’s a big part of the price. When I had less money, and wanted to visit the World’s Fair in New Orleans, I stayed across Lake Pontchartrain. The commute was not the best, but I still remember one of the staff at cafe at the Fair, who brought some free crawfish. She didn’t think someone should visit New Orleans without tasting them. She wasn’t even allowed to take tips. If I had to pay for a city hotel during the Fair, the trip likely would not have been affordable, and I wouldn’t have had that experience. But, I wouldn’t stay there that far away without a local reason today.
If I’m spending much awake time in my hotel room, even at a resort, I’m doing something wrong. It’s a place to sleep, clean up, and change clothes. The bed needs to be decent, the room/hotel needs to be clean, and it needs to be convenient to what I’m doing.
I pay extra to avoid hotels where points can be redeemed.
Lol cant believe someone mentioned Niagara falls … what a tourist trap
I’d never pay a lot for a hotel room, but I’ve slept with a view of the Sydney Opera House while visiting Sydney on a medium-priced Holland-America cruise ship. And every cruise ship gives us a twice-a-day room cleaning.
On a post about ‘expensive’ hotels, Gary starts the bidding at… $600? For the world of *actual* luxury travel, that’s pretty ‘affordable’ by comparison.
If you consider ‘expedition’ cruises as ‘hotels,’ then those are probably the most expensive things around–especially, to exotic places, like the Arctic or Antarctic.
On land, some of the highest tier entry-level nightly rates are around $5,000 (USD) these days, and many of those are African safaris, like Singita, &Beyond, Wilderness, Angama, Tswalu, etc., which do include a lot more than just a room.
Of course, there are locations, like the Maldives, that have an abundance of other high-end properties as well, some with the ‘brands,’ some not.
And there are indeed the specific brands, like Aman, One&Only, Four Seasons, Auberge, Rosewood, Mandarin Oriental, etc. that can be $1,500+/night minimum. However, you really cannot use the typical branded ‘points’ for any of those–it’s most out-of-pocket, or using benefits like an Amex Fine Hotels & Resorts $200 credits via the Platinum card (which is hardly a reason to pay those obscene rates).
Is any of it ‘worth’ it? Well, it depends. You have to really want it. Maybe more importantly, you probably should have so much money that you don’t have to ‘care’ about money to travel like this.
Finally, there’s the higher end of the typical ‘brands,’ think Six Senses (IHG), Park Hyatt, St. Regis (Marriott), Ritz-Carlton (Marriott), Waldorf-Astoria (Hilton), Raffles (Accor), etc. that you can use points, and in some cases, that’s where the real ‘deal’ can be, leveraging transfers, fourth or fifth night frees, etc.
Anyway, having done quite a bit of this myself, that’s my take. If anyone else has done this, too, feel free to add, correct me, etc. Safe travels, everyone.
Obviously it depends on what you value. I am often willing to pay more for location, although when I think back on the places I have stayed with the most spectacular locations they have been places like national park lodges, small hotels, and amazing finds on Airbnb or VRBO. Some have been expensive and some have not.
One thing I don’t like about a lot of luxury properties is that sometimes I feel like I am paying to be insulated and isolated from the area I am visiting. Like I need to be bubble wrapped in a protective cocoon lest I actually experience the reality of where I am. The result is a homogenous experience of luxury that–except for a few decorating details and some dumbed-down local dishes on the restaurant menu–could be any place in the world. But I travel to see new places, not the inside of hotels, so those sorts of places are not worth the extra cost to me.
Some non-redemption hotels are kinda nice and make you feel fabulous during your stay if that’s your thing. Faves include Villa d’Este in Lake Como, Suvretta House in St. Moritz, and Four Seasons Serengeti—all around the $2k or less range. Redemption hotels are cool too, but everyone knows the cash rate is inflated to make paying in points seem like the deal of the century.
It is, of course, all about the dopamine. The feeling you get staying at the luxury hotel, where everything is nicer and handled seamlessly for you, is much different than the feeling at the place that’s a little more run down and everything is just fine. This is why many of us in this game use the points for business class and luxury hotels. Wouldn’t pay that much out of pocket, the vacation sure is more relaxing when you get there in business and stay in a 5 star resort. And only a very small part of that difference is attributable tangible things
@Hepworth — Well said. Also, no matter how nice the lie-flat may be, doing a 12-hour time-zone change is still going to wreck you for days and days, even if you nap and eat well on the journey. Just because it’s more comfortable or luxurious does not mean that gravity no longer exists. Also, there certainly can be ‘deals’ on the higher end, too. Like, you could use points or cash for an upgrade that would otherwise have cost a fortune if just buying upfront and outright. The only times I’ve flown Emirates First was on a short-haul, 4-5 hours, because it happened to be available and was about 30K points more to do so from Business. I’d say that was a ‘deal’ because it was basically $300+ in value for something that would have cost thousands more if paid in cash.
I think you make valid points, especially with chain hotels. Most new Ritz-Carlton, St. Regis, Edition, or Park Hyatt properties aren’t that nice. I look at the renderings or photos and say the furniture looks like what I found in a Westin or Grand Hyatt a half-dozen years ago. Does anyone actually think the new Park Hyatt in London is going to be nicer or better than the Ritz or any of the non-chain 5-star luxury hotels in London? Anyways, I digress. In the US and Western Europe, $600 per night isn’t that much money if you consider that airfares and hotel rares are 40% more expensive than pre-pandemic. I would argue you probably need to spend $800-$1,000 per night at a non-resort property to get the 5-star luxury experience. Look at labor costs in major cities. In the USA, it’s almost impossible for a hotel charging $250-$400 per night to offer a doorman, bellmen, concierge, guest relations staff, room service attendants, stocked mini-bars, daily housekeeping with turndown service, etc.
When a car gets too expensive, it is often worse. A car designer once told me that it cost $1-2 billion to develop a car, whether it’s a cheap Kia or an Aston Martin. A low sales volume can result in nearly $100,000 per car design cost. What I would like is a car with a second battery to jump start the first battery.
@FNT Delta Diamond — On the new Park Hyatt London, it’s not even about the comparative luxury, because there are so many high-end 5-stars already in London. No, the primary benefit that I see of the Park Hyatt is that you can stay there for a relatively affordable points transfer and redemption, and if you have status benefits, like for upgrades and breakfasts, then it’s even better. Let’s say it’s 35-45K Hyatt points/night entry-level. Ok, so that’s $400+ relative value in points from Chase or BILT to Hyatt for a $1,000+/night room, which seems like a pretty good deal to me.
I routinely stay at the Peninsula in Chicago, LA, and NYC–a client insisted we do it for business meetings. Very expensive but great service, rooms, and nice touches. Couldn’t afford it for myself.
@Marissa — Always nice to stay at one of the top hotels in NYC on the company dime. That’s a pretty generous travel policy to include The Peninsula New York.
Stayed at there most recently in July 2023. While the hotel is indeed historic (building was built 1904), the rooms definitely needed a refresh. I believe they started renovations in 2024. Have you been since then? Curious if they actually completed that.
At least the rooftop bar and views of Fifth Avenue made up for it. And it is right across from the original St. Regis, a block from the new Aman, and …that Tower. (If you know, you know.)
I’ve had the opportunity to host “aspirational” incentive trips for my client over many years. These included multi-night stays at the Lanesborough in London, the D’Angleterre in Copenhagen, the Meurice in Paris and several others. The common denominator for all of these was location, and the attention to detail in service. Whether it was providing printed calling cards for my wife and I at the Lanesborough (with an amazing butler) or putting us in the Royal Suite at the D’Angleterre for our honeymoon (that’s another story) — each was ideally located and each made sure we were completely happy. Was it worth it? Of course it was when the client paid.
But many stays we paid for ourselves in luxury hotels both big and small. The Hermosa Inn in Paradise Valley AZ is a gem. We loved a waiting Mercedes at the port in Civitavecchia from the Majestic in Rome (with world’s best concierge), a view of the Opera House at the Hyatt Sydney at The Rocks, or nights at the Peninsula in Hong Kong. Was it worth it? Of course – splurges are almost always worth it.
In short – the experience is what matters. YOLO.
Interesting question.
I view it as everyone has their cut off… For Gary it’s apparently $600 and maybe higher or lower for others.
For me, my cutoff is $350 a night. I base this on still being to likely get a bicoastal flight or Caribbean/Mexico/Central America flight for around that price, and in my mind I shouldn’t be paying more per night than the initial flight, just my metric.
While there is this esteem of “world class service” I personally don’t think 1) it varies significantly once you are beyond a certain price point
2) has more to do with individual properties and employees commitment to service than a brand or name
3) can just as easily be disappointing, especially if expectations are very high
Personally I haven’t seen dramatic differences beyond a certain level but I am also solidly upper middle class and have not done the White Lotus exclusive resort experience, nor would I want to (supposedly the rate there is $1600 a night).
I do think a large reason higher end places with higher end prices exist is to simply allow for class separation. Just like in The White Lotus, those staying high end are not going to be seen hob-nobbing with the poors at the next “ramshackle” resort next door.
The answer to the question is very simple.
When I worked in a multinational company I travelled often and stayed in the high priced hotels.(park hyatt, ritz carlton, st regis, etc). But i never saw the value added.
Now that i pay my own way I would never splurge on any of those hotels.. Very litttle value added
I find amaizng hotels usually below $200-250. in most parts of the world (new york, london etc excluded).
First off, thanks for writing this. You raise some really valid questions about need, luxury, and value. Then there’s loyalty and the programs so involved. I’m not at all sure there’s a right answer to any of this but asking questions is good for awareness.
For myself, I appreciate a lot of the benefits of a nicer/pricier hotel at times but that’s what points are for. I have no need to steep myself in luxury but at times I’m totally willing to spend a little extra for more comfort. When my wife and I were staying at the Park Hyatt Siem Reap last year the staff often acknowledged us by name which I found creepy rather than comforting as I find the pretense of anonymity preferable to always being observed. I suspect people who need more acknowledgement would find the recognition endearing. Different strokes.
Anyway, props to you for bringing up a topic worth discussing.
Of course nice hotels are worth it with points. With money, not so much.
@1990: Come on. Do you actually think the owner of the Park Hyatt erected the hotel and paid Hyatt to manage as a Park Hyatt to get guests redeeming points? Of course not. They built the hotel because they wanted to get US Embassy business. Period.
@JT$: Five years ago before the pandemic, I would have agreed with you. You could get great value in most markets at $350 per night. But now — not so much. In many markets you pretty much have to pay $350-$500 to ensure you get a room that’s clean, comes with daily housekeeping, and has basic amenities and services that used to be commonplace even at a Holiday Inn.
@Christian, I stayed six days a few blocks from there in the summer of 2023. The staff greeting you by name probably harkens back to how things were done before the Khmer Rouge. Not doing that at a nice hotel elsewhere may be more of a loss in the modern world that is no longer so genteel. I am impressed that the staff learned the names of the guests. If I may ask, how were you greeted? Mr. last name? Mr. first name?
We stayed at the Hotel Danieli in Venice. We were celebrating our 35th anniversary, and Venice was my husband’s dream trip.
Nine years ago, the rate was 600/nt. That did include an amazing breakfast on a terrace that overlooked the Grand Canal.
We were spending nine nights there. At check-in, they surprised us with an upgrade to a suite. Every afternoon, something appeared in our room. Canapés, sweets, wine, a small gift, it was different each day.
The service was top notch. The room was serviced twice a day. They unpacked for us. When we sent laundry out, it came back not only perfectly folded, but in a lined box, tied with a ribbon. When we had a minor maintenance issue, it was attended to almost immediately.
Did we need all those things? Of course not, but it made a wonderful trip even better.
Hotels are per definition grossly overpriced.
Let’s compare to a luxury rental apartment. Say, that rents for $6,000 per month and comes with pool, tennis court, personal assisted front desk, laundry service, etc. That’s $200 per night.
Most standard hotels charge more than that!
And yes, the apartment landlord also needs to pay personnel and make a profit.
From a comfort perspective no. However, location and an amenity like a balcony on an ocean maybe. The difference between coach and business class is comparable because a coach seat (today) will never come close to a business seat unless you get really lucky and a have a row to yourself.
In a rational world, paying $600 for a hotel room is NEVER worth it. Mind you, I’ve stayed in more than 100 $600+ hotel rooms, but I’ve never paid for them. They are exactly like other luxury items: they are marginally nicer, but not worth the massive additional cost. This is, of course, the magic of loyalty travel programs. Fancy hotels ARE better, just not worth it. If you can stay in luxury hotels for the cost of regular hotels (or less), you should. That said, even on points, I generally recommend NOT staying in expensive hotels in urban areas. When it comes to a city, once you get to decent levels of comfort (say a 3 star property), it’s all about location. You’re likely not going to be lingering at your city hotel — unlike at a resort. And if you’re at a fancy city hotel, everything that’s not included is likely to be ridiculously expensive, so you’re probably not going to be using their services. When I redeem hotel points in urban areas, I’m generally looking for value.
We stay at an Aman 1x or 2x in an 18 mo period, usually at some exotic place. They are almost always the largest annual expenses we have when I check at the end of the year. We are not flashy ppl, use points for business or first when we go. It’s a splurge but I enjoy it and my spouse really enjoys it. You only live once.
@Joseph. Agree. I use points and miles to fly. I use money to stay at Singita, Aman, and the Four Seasons. I am more than willing to pay to avoid point hackers. No Marriott/Hyatt/IHG will ever come close to providing the service and experience of professionals in hospitality.
Back in the day of Starwood (RIP), I stayed at many of the Hawaii hotels on points. We stayed at the Princeville in Kauai, which I take to be a high-end hotel. However, we got less than high-end service. You see, we were a family of 4 with 2 small well-behaved children. And we’re not Caucasian (not sure that has anything to do with anything, but maybe). The looks they gave us when we tried to eat at their restaurant — OMG, they wouldn’t even seat us, and suggested we order to-go. We were tired but got into our rental car and drove off to find some eatery off property. That was the very 1st night we were there, and let me tell you, that soured the entire stay for me. Who would look at decor or little night-stand amenities when you’re looked down upon and treated less than dirt? We just enjoyed Kauai in spite of the ‘luxury’ hotel. We were dressed fine, but in vacation clothing. I would never pay top dollar for hotels based on that experience.