At most hotels, the dynamic is clear: a guest pays and the hotel delivers. The exchange is straightforward, predictable, and ultimately forgettable.

At the very best hotels, the axis tilts entirely: it’s not the hotel that feels fortunate to host the guest, but the guest who feels privileged—almost chosen—to be allowed inside. That inversion is the foundation of extraordinary pricing power and enduring asset value.

Hotel du Cap-Eden-Roc demonstrates this principle to perfection. Entry-level rooms cost €4,000 a night, and yet the hotel sells out year after year. Guests rebook before they even depart. This compulsion to rebook before leaving creates something far beyond demand; it generates a fevered scramble, a collective panic to remain inside the circle.

This phenomenon does not come from gimmicks, and it It certainly does not come from loyalty programs, which are the surest way to strip a property of its soul by reducing uniqueness to points and perks. It is the result of precision in the soft product: perfectly timed outreach, gestures that signal exclusivity, and service that makes each experience feel curated rather than transactional. It is also the result of flawless hard product: immaculate grounds, exceptional dining, and meticulous attention to every physical detail.

Above all, it’s the psychology on site that defines the experience. Guests and staff radiate the same feeling — that being here is privilege not to be taken for granted. The property becomes a community, a gathering of the fortunate. In that setting, price is no longer a barrier but part of what makes the experience meaningful.

This is why certain assets deliver top-line performance that looks staggering to outsiders, and why they command multiples scoffed at as irrational. But they are not irrational; they are the inevitable price of privilege.They are the logical outcome of scarcity combined with carefully engineered psychology.

If you’re an operator, the lesson is simple: Cultivate that sense of privilege, and your eventual exit will command multiples that others cannot achieve. For allocators, the takeaway is equally clear: when a property can consistently make its guests feel chosen, you are not investing in a hotel. You are acquiring a pricing engine that cannot be replicated.