​In the most basic and fundamental sense of the phrase, a “luxury hotel” is simply a hotel that provides luxurious accommodations and experiences for its guests. There isn't an exact standard that luxury hotels must meet, such as star rating or size requirements, but there are some general characteristics that are common among these types of properties, such as:
  • A star rating of four or higher.
  • Lavish decorations and comfortable furniture.
  • Larger rooms with high-quality amenities.
  • Specialty services such as spa, salon, valet, concierge, and more.
  • Fine dining options.
  • Low wait times for service or assistance.
  • Easy booking and excellent customer service.
Luxury hotels provide a unique standard of experiences for guests and are often seen as a destination in and of themselves. Luxury hotels typically cater to a specific clientele and aim to create the atmosphere that their audience desires.
​Why are luxury hotels appealing?
Some market research shows that a high percentage of travelers are now focusing more on experiences than cost when choosing accommodations. In fact, in the 2021 Global Travel Trends Report, 61% of respondents said they'd be willing to spend more than they normally would on a trip in 2021. Luxury hotels grant guests an opportunity to indulge and truly enjoy themselves. As a result, some of those guests are willing to spend more on luxury experiences.
While guests who choose to stay at a budget hotel may be looking to save money on accommodations to spend elsewhere, perhaps at attractions or sampling the local fare, luxury hotels and resorts may be viewed as a one-stop-shop for food, relaxation and experiencing a “destination within a destination.”
Laurent Delporte, a world-renowned luxury hospitality expert, explained, “It’s not possible for everyone to like you, but the most important thing is to be very particular and to think about your customer and to create a hotel for them, because you can’t appeal to everyone. If you try to appeal to everyone, you appeal to no one.”
​Comparing luxury hotels to budget hotels
Inns, hotels, motels, resorts, boutique hotels, and large chain hotels have one thing in common: They provide rooms for travelers. From there, each segment goes off in its own unique direction, primarily in terms of the service and amenities provided, as well as the cost of an overnight stay.
While budget hotels may offer services like free Wi-Fi, breakfast, and standard amenities, luxury hotels typically tend to branch out much further. Room service, valet laundry, and concierge service are common options that luxury hotels offer that may not be included at a budget hotel. A luxury hotel may have several restaurants, bars, pools, or even an in-house spa or salon, while a budget hotel may include a breakfast area, communal lobby, or private workspaces.
Luxury hotel guests can also expect different in-room amenities. When booking at a budget hotel, guests can expect the typical bathroom amenities: Soap, shampoo, conditioner, and lotion. Luxury hotel bathrooms, on the other hand, may have plush robes, slippers, razors, and facemasks. Complimentary wine, snacks, or welcome baskets are common to find in a luxury hotel room, but standard hotels may charge extra for these perks.
While levels of cleanliness should be the same across the board, budget hotels tend to be less lavish. When staying at a budget hotel, travelers usually expect a bed, TV, desk, and maybe even a couch or chair to lounge on. There’s usually enough room for 1-2 people to move around comfortably. Some rooms have coffee makers or microwaves, while others do not.
At a luxury hotel, however, guests usually get a lot more space and rooms decorated with fine linens and top-tier products. Many luxury hotel rooms include kitchenettes, jetted tubs, and additional living spaces. Luxury hotel rooms commonly range anywhere from 430-4,000 square feet. A standard hotel room, however, is 330 square feet on average.