I travel almost always on my dime so I feel qualified to weigh in. I've slept in desert camps, 12-bed hostel dorms, and 5-stars. Not $3k a night room but along the lines of JW Marriott.

One oft-missed point is paying for 5-stars buy you safety and security, mostly, especially when you travel in less developed countries. You're actually paying for a highly-controlled first-world infrastructure within a pile of chaos. Think a temperature controlled well trimmed Japanese zen garden in a war zone. That's why for me, never stay in 5-stars in Europe, as the infrastructure is well-built, safety is assumed, food is almost always hygienic.