My splurge is to pay more for a hotel based on location - specifically, proximity to a performance venue (my leisure travel is 100% oriented towards attending performances).
I tend to always run late when getting ready, so having the venue a few steps away (such as Le Meridien a block from the Liceu in Barcelona or the Vier Jahreszeiten a block from the Nationaltheater in Munich or the Bristol across the street from the Staatsoper in Vienna) makes the additional spend worth it to me.
If not attending a performance, carefully-screened 3* and 4* are fine - no need for the over-the-top opulence of a 5*)
