Yesterday’s Wall Street Journal noted that the nightly rate for a standard room at an established luxury property in London and Paris broke the $1,000 barrier some time ago, with New York not far behind. Will $1,000 a night soon become the new normal? I certainly hope not, but for that amount of money, my basic expectation of a hotel is to be supremely impressed.
I understand the concept of overhead; I charge a premium for my editorial services because I don’t accept complimentary stays. Superior facilities, unique locations and quality service all cost money (as the article notes, the Hotel du Cap-Eden Roc has roughly three employees per room). I have found, however, that when I encounter problems with a hotel that charges 30 to 40 percent more than comparable properties in the area, those problems tend to bother me 30 to 40 percent more than usual. I’m sure I’m not the only one who feels this way.
No doubt some Hideaway Report readers are more comfortable with these pricing altitudes than others, but all of them expect value for their money. The next five years will see exponential growth in new properties asking guests for $1,000 a night just to get past the doorman. Not all will be worth it.