Not at all. I'm making a very different point. You're making the point of upmarket competition whereas I am making the point that lateral, i.e., comparable, competition is easily the main driving force. To be clear, while the presence of a Ritz-Carlton or other luxury property can certainly have an effect, I am asserting that the main competitor will be hotels of similar status and cost. The existence of a nearby comparably priced Sheraton Grand is a far greater threat to an underperforming Westin than a Ritz-Carlton or Edition. Simply put, 99% percent of the Westin guests can afford the comparably priced Sheraton, while only a select group of guests can afford the often substantially higher Ritz-Carlton

Some real numbers: this week I stayed at the Los Angeles Westin Bonaventure. The rate was roughly $250/nt as is the Los Angeles Sheraton Grand which is within walking distance and comparably priced, sometimes a little higher, sometimes a little lower. By contrast, the nearby Los Angeles Ritz-Carlton is $1,070/nt. The difference between the Westin and Sheraton is $10. At such a small difference, if the Westin goes downhill, 99% of its guests can choose to stay at the Sheraton Grand and vice versa. By contrast, its a fairly safe assertion that far fewer guests have the option of choosing the 1k/night Ritz-Carton as an alternative over the Westin or Sheraton Grand.

Incidentally, I am an attorney and very few attorneys can expense $1,000/night hotel room.