Where to Find the Cheapest Hotel Stays in 2025

Image: (Courtesy of Air Canada)
Image: (Courtesy of Air Canada)
Noreen Kompanik
by Noreen Kompanik
Last updated: 12:05 PM ET, Tue June 10, 2025

Hotels.com announced the release of its 2025 Hotel Price Index which analyzes global year-on-year average daily rates from its bookings in popular domestic and international destinations, pricing trends and differences between star ratings.

Highlights include:

Luxury Abroad: International 5-star hotels are, on average, 27% less than their U.S. counterparts. Standout deals under $200 can be found in cities like Hanoi, Pattaya and Auckland.

4-Star Hotels: U.S. travelers upgrading from 3- to 4-star hotels pay 38% more to up-star, while jumping from a 4- to 5-star property costs 118% more on average.

Domestic Prices Dip, International Rise: U.S. hotel rates fell slightly (-2%) while international rates rose (+4%).

VIP Access: Hotels.com's VIP Access program offers member perks worth hundreds of dollars at top-rated properties worldwide.

"For price-conscious travelers in today's economy, the Hotel Price Index offers a rare, data-driven lens into where your money goes furthest. It's like a travel cheat sheet — revealing where to splurge, where to save, and where luxury quietly costs less," said Melanie Fish, Vice President of Global PR and Hotels.com's travel expert.

She added, "Cities like Bangkok, São Paulo and Mexico City stand out for offering top-rated stays across all star levels, proving that great travel doesn't have to come with a high price tag. And for those travelers looking to stretch their dollars even further, programs like Hotels.com's VIP Access can add unexpected value, from complimentary upgrades to spa credits, turning a good deal into a great experience."

Price Insights

Some U.S. cities including San Francisco (-9%), Austin (-7%) and Atlanta (-6%) saw declines in hotel prices while Chicago (+7%) experienced an increase.

Internationally, Toronto (-3%), Amsterdam (-3%) and Istanbul (-2%) saw small decreases in average daily rates, while average prices went up year-over-year in Kyoto (+13%), Tokyo (+12%) and Madrid (+12%).

More affordable trending destinations including Bogotá, Colombia and Benidorm, Spain offer highly rated accommodations at a fraction of the price.

Five-star Luxury for Less

Americans looking to stretch their dollars without sacrificing luxury should consider heading abroad, where average 5-star rates are cheaper than those in the U.S. 5-star stays under $200 include:

  • Hanoi, Vietnam
  • Pattaya, Thailand
  • Gothenburg, Sweden
  • Panama City, Panama
  • Auckland, New Zealand  

Cheapest 5-star stays in the U.S.:

  • Portland, Oregon
  • San Antonio, Texas
  • Las Vegas, Nevada
  • Atlanta, Georgia
  • Miami, Florida 

Most popular cities for U.S. travelers booking 5-star stays:

  • Las Vegas, Nevada
  • New York, New York
  • London, England
  • Dubai, UAE
  • Bangkok, Thailand 

Best values for domestic 4-star stays include Las Vegas, Atlanta, Portland, Orlando, Denver and Houston while destinations like Bangkok and Bogotá offer 5-star stays at near 3-star prices.

Scoring Perks

Hotels.com Members staying at VIP Access properties enjoy exclusive perks, discounts, food and beverage credits, spa credits, free beverages and bottles of wine. These include:

  • Equinox Hotel New York: Complimentary Cryotherapy spa treatment for 2  
  • One&Only Palmilla, Los Cabos: $175 in credits for spa and golf course
  • Gili Lankanfushi Maldives: 20% off airport transportation, $100 resort credit and complimentary bottle of wine
  • The Retreat Collection at 1 Hotel & Homes South Beach: $250 resort credit and free breakfast
  • Sandblu Resort Santorini: $100 food and beverage credit

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

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