Top 10 Budget-Friendly Destinations with Five-Star Hotels from £70

The top 10 destinations offering five-star stays on a budget have been revealed. Despite volatile travel prices, it is possible to enjoy a five-star holiday on a budget, with high-end accommodation available for as low as £70 per night.

The data was released as part of Hotels.com's 2026 Hotel Price Index, based on internal booking data and a global survey of 11,000 travellers across the UK, USA, Canada, Mexico, Brazil, France, Sweden, Denmark, Norway and South Korea.

Expert Insights on Budget Luxury Travel

Travel expert and spokesperson Melanie Fish said: "Travellers may be feeling the squeeze, but they are also getting smarter. With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travellers are making real trade-offs."

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The report shows that luxury stays in Croatia, Estonia, Zaragoza, Spain and Bulgaria can be enjoyed for under £150 per night. Other cheap but luxurious options include nights in Wrocław, Poland (£120), Tirana, Albania (£130) and Riga, Latvia (£130). Five-star offerings are also available in the UK, including Brighton (£115), Cornwall (£135) and Liverpool (£170).

Notable Price Drops

In addition to the cheapest destinations, ten notable locations with major price drops over the past year were revealed. These include Loire, France (down 32%) and Edmonton, Canada (down 31%). Further places include St. Thomas, US Virgin Islands (down 30%), Dortmund, Germany (down 21%) and Turin, Italy (also down 21%).

Surprisingly, the report found that booking last minute can save money, with hotel rates up to 26% lower when booking close to departure. For further savings, prices are 14% lower for Sunday stays, while Saturdays are the most expensive. January offers the lowest prices, while the second week of July is the priciest, at least domestically.

Luxury Wish List

Hotels.com's global study, carried out through OnePoll, also revealed what is top of everyone's luxury dream wish list: a hot tub with a view (44%), followed by a penthouse suite (41%). When asked what they consider a truly luxury hotel to offer, great food at the hotel (31%), a room with a view (30%) and premium in-room amenities (28%) came top.