Where can you find the world’s cheapest five-star hotels?

Why choose five-star hotels?

Avios travellers are increasingly drawn to luxury holiday destinations because these properties deliver far more than just a bed for the night. The appeal lies in:

• Exceptional comfort: spacious rooms, indulgent bathrooms, and elegant touches.
• Personalised service: attentive staff who go above and beyond.
• World-class amenities: spas, pools, rooftop bars, and fine dining under one roof.
• Prime locations: beachfronts, historic centres, or exclusive enclaves.
• Peace of mind: guaranteed quality and consistency.

These qualities explain why so many people search for the best luxury holiday destinations and why interest in more affordable five star hotels and budget luxury travel continues to rise.

With these qualities in mind, let’s look at some of the destinations where five-star luxury comes at a fraction of the price.

Morocco: culture, cuisine, and luxury bargains

Morocco stands out for combining vibrant culture with surprisingly affordable luxury stays. Marrakech enchants travellers with bustling souks, palaces, and lively streets, complemented by an array of five-star hotels offering exceptional value without compromise on quality.

A prime example is Riad Jona, where a five-star night averages just £79. This traditional riad captures the essence of Moroccan luxury with exquisitely decorated rooms, an intimate courtyard, and personalised service.

Pair this with off-peak return economy seats between London and Marrakech at 27,500 Avios plus £1 per person, and you have one of the best luxury travel deals globally. For those seeking more indulgence, consider these standout hotels renowned for comfort, service, and world-class amenities:

• Royal Mansour Marrakech: This flagship property, nestled in the medina near the royal palace, offers sprawling riads, bespoke service, and exquisite attention to detail. Enjoy private rooftop terraces, award-winning spa treatments, and gourmet dining.
• Four Seasons Resort Marrakech: Set within lush gardens between the city and Atlas Mountains, this resort features spacious rooms, personalised concierge service, an infinity pool, multiple dining venues, and a luxurious spa.
• La Mamounia: A legendary hotel combining Moroccan architectural splendour with modern luxury. Sumptuous rooms, signature scents, rooftop bars, and beautifully curated gardens create the perfect setting for special occasions.

Each of these hotels exemplifies the qualities luxury travellers seek: exceptional comfort, attentive service, premier amenities, and prime locations, making Marrakech a top destination for affordable five-star experiences.

Romania: hidden gems at remarkable prices

The Balkans is known for offering excellent value, and growing interest in Romania reflects that. The capital, Bucharest, captivates with its wide boulevards, ornate architecture, and vibrant café culture.

One of the standout deals is the Grand Hotel Continental Bucharest, where a five-star night costs around £87. Add return off-peak economy seats between London and Bucharest at 27,500 Avios plus £1 per person, and the savings are clear.

There are plenty of reasons to visit Romania: the Carpathian Mountains, medieval castles, and vibrant nightlife. Visitors can explore Bran Castle, admire the painted monasteries of Bucovina, or drive the scenic Transfăgărășan highway. For travellers seeking an alternative to mainstream Europe, a luxury holiday here feels both distinctive and surprisingly good value.

For more indulgent stays, consider:

• InterContinental Bucharest (now Grand Hotel Bucharest), a city landmark offering panoramic views from its sky lounge, sophisticated rooms, and exceptional conference facilities.
• Epoque Hotel, known for its blend of neoclassical design and contemporary comfort, with personalised service and a central location close to Bucharest’s attractions.
• Athenee Palace Hilton, iconic for its historic significance and refined amenities, offering elegant rooms, fine dining, and a wellness centre.

Croatia: Adriatic charm and city breaks

Croatia has transformed into one of Europe’s hottest holiday destinations, balancing stunning Adriatic coastlines with historic towns. Dubrovnik may be famous, but Zagreb offers exceptional value.

The art’otel Zagreb provides five-star stays from £159 per night. Reward travellers can book return off-peak economy seats from London to Zagreb for 23,500 Avios plus £1 per person.

Other notable options include:

• Esplanade Zagreb Hotel, a classic luxury landmark with elegant rooms, gourmet dining, and a spa in the city centre.
• Hotel Dubrovnik Palace, perched on a cliff overlooking the Adriatic, combining luxury amenities with beautiful coastal scenery.
• Le Méridien Lav, a sprawling resort near Split with multiple pools, restaurants, and a private beach.

Australia: luxury without compromise

Australia may not seem like a candidate for low-cost five-star experiences, but some options offer surprising affordability compared with global averages. Sydney’s The William Inglis Hotel averages just £123 per night: remarkable for a major world city.

For Avios collectors, return off-peak business class seats between London and Sydney are available at 290,000 Avios plus £775 per person. It’s not cheap in points, but compared to cash fares it represents strong value.

Australia’s charm lies in its contrasts: from golden beaches and tropical reefs to vast deserts and cosmopolitan cities. Iconic sights such as the Sydney Opera House and the Great Barrier Reef sit alongside rugged outback adventures, offering travellers endless variety. For those seeking indulgence, the country is also home to world-class luxury hotels and exceptional stays in every major destination.

Additional exemplary hotels include:

• Park Hyatt Sydney, a waterfront icon with stunning Opera House views, sophisticated interiors, and world-class dining.
• The Langham Sydney, known for its elegant design, serene spa, and premium location overlooking the harbour.
• Shangri-La Hotel, Sydney, offering panoramic city and harbour vistas, luxurious rooms, and top-tier amenities.

Mauritius: island luxury at affordable rates

For a tropical escape, Mauritius holidays are hard to beat. White-sand beaches, lush landscapes, and excellent hospitality make the island one of the best luxury holiday destinations worldwide.

The Heritage Telfair Resort offers luxury from £231 per night. Using Avios, return off-peak business class seats from London to Mauritius can be booked at 200,000 Avios plus £575 per person.

Other premier resorts shining in Mauritius include:

• Constance Prince Maurice, renowned for its romantic seafront setting, suites with private pools, and exceptional spa.
• One&Only Le Saint Géran, a legendary resort featuring pristine beaches, gourmet dining, and tailored experiences.
• LUX* Belle Mare, offering chic beachfront villas, vibrant dining, and wellness retreats.

Mauritius is an island that blends natural beauty with cultural richness. Visitors can enjoy mountain hikes or dive into the turquoise waters of Blue Bay Marine Park. Climbing Le Morne Brabant and tasting Creole cuisine are experiences not to be missed.

Those in search of indulgence will find world-class beachfront resorts, while honeymoon and all-inclusive packages make the island a favourite for couples and families alike. Its enduring popularity is reflected in how often travellers return for new experiences.

Making the most of Avios for luxury stays

For travellers aiming to pair affordable luxury travel with clever redemptions, the key is knowing how to spend Avios effectively. Typically, the best points for cash value redemption comes from long-haul routes where the Avios worth is higher. However, there’s a lot of value to be had on short-haul too. Redeeming for hotels is possible, but the best use of Avios lies in reward flights.

Affiliate Disclaimer

Some links in this article are affiliate links. If you make a booking or purchase through them, Reward Flight Finder may receive a commission at no extra cost to you. Our recommendations remain editorially independent.