I'd hardly call $250 budget either.
Even when I am travelling for business (when I tend not to care about money), I don't think I spend close to $250 a day. For me, business travel is hotel runs around $US 120 a day. Car is $US 40 a day. Food is $US 40 a day. That's $US 200 a day (excluding air fare). And I usually spend less than the allotted $40 a day on food (we get a $40 a day per diem which I get whether I spend it or not, so if I can keep the food cost under $40 a day, then I get to pocket the difference).
I could see, though, in some of the more expensive cities like New York, San Francisco or L.A. that creeping up to $US 250 a day. Hotels tend to be pricier in those locations. I have spent close to $US 200 a day on hotels occasionally in some of the larger US cities.
It's amazing to me the difference between the cost when I travel for business and the cost when I travel for pleasure. I think nothing about dropping $US 120 on a hotel when travelling for business, but get bent out of shape if someone wants $US 40 a night for a place when travelling for pleasure.