Any hotel chain has its ups and downs. I'd agree that Fairmont is not uniformly in the luxury category, but I've seen similar issues in other chains as well. Two great examples are the Four Seasons Carlsbad or the Ritz Carlton Half Moon Bay. Both are "city escape" hotels with no comparison to the top hotels of the Ritz, FS, or Fairmont chains.
So, I'd say the original poster could be answered most clearly with...depends.