Luxury Pioneers

Why the sudden merger of tony and tacky? Experts credit it to everything from the real estate boom making it harder to find new spots to open in to the popularity of destination spas, a key part of most of these new developments. But there's something else going on: the boom in luxury travel, which has proven to be stronger and longer-lasting than anyone predicted. Luxury hotel room rates jumped 9.1% last year, according to Smith Travel Research, the highest increase in nearly two decades. As a result, hotels are suddenly competing over new projects and properties. "Everybody wants to be a player," says Smith Vice President Jan Freitag. Hotel developers, running out of places to put the masses of luxury travelers, have found a new answer: Open wherever you possibly can — even if that means going into weird, off-the-beaten-path locations.

And while it can be confusing — who would expect to see a St. Regis in Fort Lauderdale? — it can also create opportunity for travelers. Since these properties are in less popular locales, they can be easier to book. During our recent trip, rooms at most of the toniest resorts in the Caribbean and even South Beach were sold out on weekends, yet we were able to book our suite at the Westin on a day's notice. And many of these hotels offer discounted rates. The Four Seasons might like to charge top dollar for its new Silicon Valley location, which has all the chain's five-star trappings. But while the nearby San Francisco property can get $500 or more for rooms, its East Palo Alto location was recently charging $275 to $325 on weekends and holidays. Canoe Bay in Wisconsin may have a fancy wine list, but at what other Relais & Chateaux property do rooms start at $300 — and can you get a massage for $95?

Of course, there are differences at these hotels: The East Palo Alto Four Seasons, for one, sits just off a freeway in a neighborhood that used to be called Whiskey Gulch. Opening in remote locations often means it can be hard to find staffers versed in high-end service, so guests may find that the white-glove treatment in, say, Hawley, Pa., is not up to par with the Ritz in Paris. And no matter how luxurious the hotel, the infrastructure of an up-and-coming town hasn't always caught up. Sometimes, even finding a decent restaurant nearby is a challenge. ("You'd have to define what you mean by a decent restaurant," deadpans Dan Dobrowolski, owner of Canoe Bay. "Applebee's?")

Back here at the Westin, we are quickly struck by how nice the hotel is beyond just the pool. There are waterfalls and sculptures in the lobby, and the spa is in a serene, impeccably manicured country club setting. But when we ask the concierge what to do on a Saturday night, our enthusiasm is somewhat deflated. We could always go to South Beach, she says, which is a 35-minute cab ride away, or Fort Lauderdale, about 20 minutes. But if we want to stay in Hollywood, among the biggest attractions are a new casino and the city's beachfront promenade.