“Higher cost structures mean that the breakeven-point for the hotels is higher … of course these days hotels are barely running any occupancy, so it costs them a lot of money just to keep their doors open,” McCarthy said in an email. “I also think that if you are a luxury hotel there is an expectation for the level of service that you expect as a guest and that you are paying for. With very little business it becomes very difficult for a luxury hotel to offer their guests the services they would expect.”