The 'devaluation' of HH points has been happening for at least a couple years, and not just at luxury properties.
I usually stay at mid-level and upscale Hilton properties, not the Luxury properties, and the redemption rates at these properties has really dropped since the pandemic.

For example: in 2019, a middle-of-the road mid-scale Hampton Inn or HGI would run you 22,500-27,500 points a night.
Now they are consistently 40,000-50,000 points a night, and you will almost never see a rate below 30,000 points a night. That's a roughly 75% points-price increase.
6 years ago, a typical Hilton would run me 40,000-50,000 points a night, and now they are usually 60,000-80,000 points.

I've been loving the regular 'promotions' (and sad that the current promotion is so meager), but those extra points are more than wiped-out by the increased point charge for rooms, and are needed to make up for the generally dropping value of the points.