You're right, Hermes Hotel is not a luxury hotel, not in the conventional way.
But luxury means different things to different people. My idea of luxury is location, service, comfort, cleanliness and a friendly staff willing to help. As I don't use spas or swimming pools in the hotels I stay - and am not crazy about Versailles-like decoration - those perks would be lost on me.
Good luck with finding the hotel you'll love!