World's most expensive hotels 2005

By Sophia Banay

updated 4:11 p.m. ET April 22, 2005

The most expensive hotels in the world cater to a tough, albeit well-heeled, crowd.

Rap stars, tycoons, royalty and CEOs know the difference between the sublime and the merely impressive. What's more, if the champagne is not properly chilled, the thread count on the sheets inadequate, the luggage not brought up with alacrity or the morning coffee served anything less than piping hot, they may take their Black cards and Gucci shoes elsewhere.

At a certain level--and price point--a hotel room ceases to be simply a place to sleep and shower in a strange city and, instead, becomes a physical manifestation of one's status and power. Like buying a $100,000 wristwatch, the point is not to tell time better but to show the world you can afford it. Nevertheless, as with a pricey watch, if you are going to be shelling out that kind of coin for the best, you expect your money's worth.

When a hotel charges four-figures per night, it is acutely aware of the inherent quid pro quo involved: Excellent service in exchange for exorbitant rates. They know that pampering at the highest level is what keeps the VIPs coming back. But what most non-VIPs don't know is that all too often the supermodels, Hollywood producers or Saudi princes in the best suites aren't paying the full rate--if they're paying anything at all.

Why is that? Richard Engle, a travel consultant at luxury-travel company TravelWizard.com in California, compares it with the airlines, which through different discount offers and affinity groups can often give the best customers lower rates. "When we're thinking about what we can get the hotel for, we never think in terms of rack rate since we almost never have to pay it," he says.

It is also possible that a hotel's management will upgrade celebrities or other luminaries at their own discretion--sometimes even waiving all charges completely. "In the world of big, high-profile stars, money doesn't apply because they bring publicity to the hotel," says Engle. "I wouldn't be surprised if Oprah didn't pay anything" when she travels.

But one doesn't need to be a billionaire or a talk show host to get the star treatment. In Las Vegas, for example, at The Mansion at The MGM Grand, a subsidiary of Kirk Kerkorian's MGM Mirage, most guests may never know that the official rack rate starts at $5,000 per night because rooms are almost exclusively reserved for the casino's highest rollers, who stay for free.

Yet, it is possible to be an ordinary mortal and still get a great room for less. Thanks to affinity cards, corporate discounts, airline miles and other programs, there are many ways to shave hundreds of dollars per night off the cost of even the most expensive rooms. Of course, not every hotel offers such discounts. But, depending on who you are, you or your personal assistant may be able to work out a more favorable rate. One thing that doesn't change, thank goodness--even if the price does come down--is the quality of the service.

MORE FROM FORBES

Forbes Section Front

The fastest cars for under $100,000 Affordable places to ride out the downturn Washington is on the hook for $5 trillion 5 real estate markets most likely to rebound The hottest places for green jobs in the U.S. The top 10 cars that Americans hate Christmas prices come early to Wal-Mart Some billionaires losing big in economic crisis Seven better uses for the bailout’s $700 billion Gates once again tops list of America’s richest Forbes Section Front