Luxury hotels drop 5-star ratings

Luxury hotel chains are giving up their coveted stars to save money, according to bloomberg.com. As the recession deters travelers, luxury hotel operators are struggling to attract customers and slashing room rates. But falling prices translate to the loss of some amenities, such as welcome gifts, flowers, complimentary newspapers and 24-hour room service for guests.

“It’s not uncommon that hotels make the decision that it doesn’t make financial sense to keep the fifth star and to instead reposition the hotel,” says Mark Woodworth, president of PKF Hospitality Research. “Within the next six months, we will likely see owners of very high-end hotels starting to reposition to a lower price point.”

Smith Travel Research shows the average daily room rates at luxurious hotels dropping 16 percent to $245.13 with prices for mid-range hotels down 13 percent to $87.12.

Mobile Travel Guide’s specific requirements for five-star hotels include “an exceptionally distinctive environment offering consistently superlative, personalized service.”