But see you're following this in a logical mindset. Fact is people are so far from logical. And I also really don't think that my point on New York is negated. It's a destination, same as the world. Different clientele sure, but people justify it in their heads in both cases, and pay it.
Survey says there's no reason why people should pay for a 400 dollar room at the grand. It's really nice, frankly nicer than the Sheraton Times Square which I stayed at on my aforementioned New York trip, but probably not with 400 dollars. People justify it with nostalgia, the monorail whatever and it's not a logical mindset when you think about it. You can get a house for less than that offsite and have way more space.
I guess my point is that the consumer is very rarely logical. Hell, look at what people pay for 50 yard line seats at Gillette stadium on a fall Sunday. It's ridiculous, but it's what people do for escapism.