hotel

Even the rich don't want to pay over $500 a night for hotel rooms

Unusual Whales

Apr 27, 2023 • 1 min read

Per Bloomberg

A recent survey found that even high-end travelers are starting to scale down on spending, saying they don't want to spend over $500 a night on a hotel. Only 3% of participants said they would entertain spending $3,000 a night or more.

This was according to a survey from MLIV Pulse, which surveyed 465 respondents. This study wasn't exclusive to the US, but a little over half of the respondents came from US and Canada, with a quarter coming from Europe.

Out of all the participants, 69% of them said that the maximum they would spend on a hotel per night was just $500. A little less than a quarter, 24%, said they don't mind spending up to $1,000.

An even smaller group, just 5%, said that their limit was at $2,000, and only 2% of them were entertaining, spending over $3,000 per night. The study included some respondents with the following professions.

Portfolio managers
Traders
Senior managers
Retail investors

With the majority of respondents only willing to spend from $500 to $1,000, this would mean that most fanciest hotels, suites, and larger rooms from mid-tier properties would no longer be included.

In September, it was also reported that luxury-home purchases dropped by a record-breaking 28%. During this time, the Bay Area was the most affected market.

During this time, it was also reported that non-luxury homes saw a 19.5% drop over the last three months. The last time luxury homes saw a decline this large was in 2012 when it plunged by 23.2%.

It was also noted that in 2022, luxury sales remained unaffected by the rising interest rates, as they saw a 22% increase throughout the year. It was reported that personal luxury goods global sales saw an increase to $381 billion, as companies like LVMH benefited from the increase.

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