For Hotels, Upgrades at Top Boost Bottom Line

Making suites even sweeter has trickle-down effect to lower income brackets
By Clay Dillow,  Newser Staff
Posted May 29, 2008 4:26 PM CDT
For Hotels, Upgrades at Top Boost Bottom Line
The Middle Eastern Royal Suite at Raffles Dubai.   (Raffles Hotels & Resorts)

Luxury hotels are spending money to make money, but the dollars aren’t flowing into the average traveler’s quarters, the Wall Street Journal reports. With competition growing and demand for rooms lacking, hotels are burnishing their top suites—some costing $30,000 a night—hoping the added glitz will generate buzz that draws conferences, business travelers and average Joes wishing to flirt with glamor.

The Four Seasons Hotel New York spent $50 million upgrading its penthouse; royal suites at the Raffles Dubai have butlers; a suite at the Setai in Miami boasts a private infinity pool. An over-the-top suite "allows you to reach that top-tier market," a Setai exec says. “It will attract guests who want the penthouse and travelers to our other suites, too.” (Read more Four Seasons stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.