I don't know if you're aware but luxury hotel rooms are often super cheap in that country so I'm not sure how you'd compete and make any decent income.

I own a top 1% real estate team and we make good money mostly in the luxury segment, (which BTW is not an easy job, you are welcome to give it a try)  but the by far bigger share is still from our RE portfolio.

I told them when they moved in the hot tub and AC were luxury items that came with the house, but if they break I would not be repairing or replacing them.

This code allows property owners to avoid paying capital gains taxes when they sell investment property and reinvest the proceeds into another investment property through a qualified intermediary, within a specific timeframe.For context, we support about a dozen luxury STR investors annually acquire Oregon Coastal vacation rentals with the majority of those clients originating from out of the area or State.

I'm in the Reno Tahoe, NV area and there are buy and hold opportunities, some flips, and luxury STRs.  

If you have a luxury home I think this model could work quite well, but otherwise it's very hit or miss and I don't think you'll get substantial income from it.

Specifically high end luxury rentals downtown.

This place was presented as a luxury accommodation.

As primarily a luxury STR buyer's broker and 20 year mortgage broker I can testify the importance of a reliable and experienced strategic mortgage partner. 

Over the years I have had great success turning properties like the one you are describing into luxury lofts part of the second floor unit.