Luxury travelers can save big by looking abroad. On average, five-star hotels cost 23% less than comparable hotels in the United States.
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A luxurious stay at a five-star hotel can cost less than you think.
One strategy is to look overseas. Five-star hotels abroad are often significantly cheaper than comparable hotels in the United States.
In some cases, favorable exchange rates, lower costs of goods and services, and demand can make foreign real estate more affordable for American travelers.
According to Hotels.com’s recently released 2026 Hotel Price Index, five-star hotels overseas cost an average of 23% less than their U.S. counterparts. The average nightly rate for a luxury stay abroad is $250, with some destinations less than $150 per night, while domestic five-star hotels average $370 per night.
There is no common standard for 5-star ratings, so quality may vary from country to country. However, this difference means you can expect superior service and amenities.
It’s the second year in a row that luxury stays abroad are cheaper, which is good news for 60% of Gen Z and 54% of Millennials who say they’re more interested in luxury stays this year than last.
“While fuel costs may dominate most of the conversation this summer due to volatile travel prices, the real trade-off travelers are making is hotel prices,” Melanie Fish, vice president of global PR and travel expert at Hotels.com, said in a statement. “Travelers may be feeling constrained, but they’re getting smarter. They can save up to 23% by booking closer, starting their stays on Sunday, and looking outside the U.S. where five-star hotels can offer great value. This summer, it’s not just where you go, but how you book, that matters.”
According to the index, here is where you can stay in a luxury hotel without emptying your wallet.
Destinations with cheapest 5-star hotel prices
- Porto Alegre, Brazil – $90
- Nha Trang, Vietnam – $119
- Phuket, Thailand – $144
- Wroclaw, Poland – $175
- Canberra, Australia – $188
- Tirana, Albania – $197
- Santo Domingo, Dominican Republic – $202
- Sofia, Bulgaria – $211
- Zagreb, Croatia – $220
- Casablanca, Morocco – $229
Cheapest 5-star stay in the US
- Atlantic City, NJ – $264
- Portland, Oregon – $313
- New York City, NY – $332
- San Antonio, Texas – $351
- Las Vegas, NV – $355
- Lahaina, Hawaii – $355
- Minneapolis, MN – $359
- Bozeman, Montana – $367
- Savannah, Georgia – $410
- Seattle, Washington – $427
Tips for lower hotel rates
Here are some other ways travelers can save money on their stay, according to Hotels.com’s internal booking data.
- Please check in on Sunday. The cheapest day of the week to start a hotel stay is Sunday. This could give you a 15% discount. Meanwhile, the most expensive day for domestic travel is Friday, and for international travel, Saturday.
- Please book in advance. When it comes to hotel prices, getting up early doesn’t always give you an advantage. Those who book last-minute save an average of 23% compared to those who book a room more than four months in advance. The best time is 8 to 14 days before your trip.
