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With recession looming, high-end lodgings offer luxe for less

ByABC News
October 23, 2008, 10:28 PM

— -- A weeknight stay at the white-pillared Clifton Inn, a member of the chichi Relais & Chateaux consortium in Virginia fox-hunting country, used to run $295 in fall and gallop upward.

This month and next, guests at the Charlottesville-area retreat can tuck into homemade pastries and sip Earl Grey, sink into a four-poster and savor a sumptuous breakfast (maybe gingerbread pancakes) for a bargain $129 rate, on slow Sundays through Thursdays.

And that's far from the only steal on the luxury lodging landscape.

A fire sale is on in Vegas: The top-tier Bellagio, which commands $300 and up nightly in busy times, just announced rooms for an amazing $149 this fall, even at Thanksgiving. The Fairmont chain has slashed rates, to $155 in pricey D.C. and Chicago nearly $40 off the same time last year. Some luxe London hotels are price-cutting. (The May Fair's rooms now start at about $250, down from $290 last year.)

As the stock market slumps, luxury hotel revenue holding strong until recently as hoteliers fought to hang onto profitability and exclusivity is falling as fast as autumn leaves. Every day brings news of a new deal.

Luxury for less means hoteliers "clearly are getting nervous," says Peter J. Frank, editor in chief of the upscale Concierge.com travel planning website. Even those refusing to lower prices are adding "more packages, more freebies," he says. "Or they might (offer specials) through a third-party website," such as Luxury Link, Expedia or Travelocity. Such sites also are running hard-to-beat airfare/hotel deals.

Add-ons are big news: Today, Kimpton Hotels starts a promotion with continental breakfasts for two for $1. It's hard to beat the $555 in complimentary spa services that come with a room for two nights ($555) at The Inn at Bay Harbor, a Renaissance Golf Resort, on Lake Michigan. Breakfast for two is included, too.

The just-renovated Camelback Inn, a JW Marriott Resort & Spa outside Phoenix, has an introductory package through Dec. 31 that includes two spa treatments and dinner for two $309 a night, less than a room alone cost before the $50 million face lift.

Even Four Seasons and Ritz-Carltons which usually don't slash rates are being more generous with add-ons such as free extra nights. "What's new is we are offering (promotions) for longer periods," says Four Seasons marketing senior vice president Susan Helstab. "There's very good value out there."