A couple of months ago I wrote about the luxury hotel industry's stealth cutbacks. The idea was that by paring down amenities in a subtle way they could save money without really disturbing the customer experience. But at least one resort chain seems willing to make a bolder move. Bloomberg reports that Starwood Hotels & Resorts Worldwide Inc., the owner of luxury brands including St. Regis and W Hotels, is willing to surrender some of its hard-won stars and cut back on luxury service until the travel industry picks up.

Over the past few years star escalation reached the point that some planned projects were promising six, seven and eight star hotels even though what services would exactly merit those types of classifications had not been determined. It seemed the sky was the limit. Enter the economic meltdown and travel, like real estate, took on the look of a souffle bumped in the oven. All of a sudden a seven-star hotel seems unnecessary or even vulgar and a suite that runs deep into the four figures for a night's stay a bit of an extravagance.

Hotel operators are forced to discount rooms cutting into their profits. One way to stay afloat is to reduce operating costs. The requirements for five-star luxury requires scrupulous attention to the guest which necessitates a larger staff. Luxury hotels are betting that most guests won't really mind losing some of the more intrusive guest services especially since they are paying reduced rates. The question is how much the touches really do matter to guests. Five-star hotels often seem to traffic in the ineffable. Any time I've ever heard a CEO of a five-star hotel chain speak, their stories of exceptional luxury include customer service that attains near psychic levels with service personnel who aren't just polite and efficient but who anticipate the wants and needs of their guests with a fervid attention. The truth is that most of us will generally be quite content in a four-star hotel unless you prefer being attended to in a way that makes you feel like a movie star or royalty. Maybe there should be a new classification, a four-star hotel that can be upgraded to a five star if you require the additional bells and whistles. A four and a half, if you will.

Five star butter? Yes, even butter can be gourmet. "The Best Butter on Earth," produced by Five Star Butter Co., claims to be the best butter on earth (imagine that!). Founded in 1999, Five Star Butter Co. was born out of one man's medical need for raw butter and cream that then slowly grew into many people's personal preference for raw butter and cream. Five Star Butter Co. previously only sold to gourmet kitchens and restaurant chefs, but now their high-end butter is available for home delivery. 83% butterfat, raw, organic cultured butter $49.95.

Five star hotels don't get that rating simply by having the highest thread count sheets and gourmet room service meals, they will bend over backwards (literally if need be) to keep their guests happy. So that begs the question: how far will they actually go for a client?

It might surprise you. From sending staff to get iPhone training at a local apple store (so they can help a guest learn to work hers) to last minute damage control and orchestration of a wedding proposal involving a hot air balloon, they really will do it all. Read about more crazy stories here, and if you have any of your own please share!

The New York Palace Hotel in Budapest opened this week after undergoing an €80 million renovation that not only updated the interior, but built on an entirely new wing. The hotel was originally an office building, built in 1894 for a New York insurance company. It was purchased from the Hungarian government in 2001 by Boscolo Hotels for only €8 million. The redesigned luxury hotel is extremely elegant, with a glassed-over courtyard and walkways full of gilt and marble. According to Boscolo, all of the textiles and furnishings come from Italy. The Hotel's New York Cafe has reopened as well, offering guests a taste of history, as it was a famously popular meeting place for artists and writers before World War II. Rooms start at €290 and the two royal suites start at €2,500 per night.

The addition of the new wing, which is still not entirely complete, will bring the total number of rooms up to 180 from the current 107, as well as adding conference facilities and a parking garage.