World's most expensive hotels 2005

In compiling the 2005 list of the "World's Most Expensive Hotels," we looked at the standard rate for a double room during high season at the most luxurious international hotels. Like last year's list, U.S. properties take first and last place. But last year's least expensive finalist, Little Palm Island in Florida, costs $100 more per night this year. This increase can be explained by rising energy costs--but also by the fact that, as the economy recovers, there is heightened demand and the travel industry is able to charge higher prices.

In the U.S. alone, the lodging industry is projected to earn an estimated $16.2 billion in profit in 2004 across all market segments, from luxury to economy. This represents an increase of almost 27% over 2003's $12.8 billion in profit, says Ricardo Anders, director of Business Travel Development at Smith Travel Research in Tennessee. International data is harder to obtain because participation rates are lower, but it's safe to say that profits from the international lodging industry are rising, as well.

So what is the point of offering rooms at such high prices if so many people avoid paying the full rates? For one thing, just as some passengers will still pay the full cost of a first-class airline ticket, the luxury hotels on our list famously attract hotel guests who are so rich (or traveling on an expense account) that money is, literally, no object. For another, these hotels know that the higher the official rate is for their rooms, the more exclusive the clientele will be. As with the best tax shelters, such benefits are pretty much available only to those who can afford them in the first place.

Sharp-eyed readers will note that there are different rate packages available for the hotels on our list--some are all-inclusive, others are not. We included only those hotels that had the highest daily rates. For example, one couldn't stay at Frégate Island Private in the Seychelles, which charges $2,482 per couple per night, and eat anywhere else--because there is nowhere else to go on the island. (The island is reportedly owned by German billionaire Otto Happel, who ranks 219 on the 2005 list of the World's Richest People with a fortune estimated at $2.7 billion.)

Obviously, adding the cost of three meals per day per couple would lift a number of hotels onto our list that were excluded. The Hotel Cipriani in Venice, for example, which has a standard room rate of €815 ($1,065)--including breakfast--just misses inclusion. (Deluxe rooms start around $1,700.) However, if we were to factor in meals and other costs, it is conceivable that the daily price of a stay there would easily double.

So, if you're planning a big trip and are looking to spend handsomely--or possibly just want to figure out which of these pricey properties can provide the best deal--click the slideshow to see our list of the world's most expensive hotels.

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