Bungo, that was Bilbo’s father, built the most luxurious hobbit-hole for her (and partly with her money) that was to be found either under The Hill or over The Hill or across The Water, and there they remained to the end of their days.
There are no more uses of "luxurious" in the book.
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a luxurious room with an ocean view
Habit converts luxurious enjoyments into dull and daily necessities