Boutique hotels are booming

by | Jun 6, 2018 | All, News

Boutique hotels are booming, here is one in Positano, Italy

Boutique hotels are now more popular than upscale hotels, according to a new report that says supply is surpassing that of the traditional hotel.

The popularity of boutique hotels seems to be soaring at the moment, as data reports that these desirable lifestyle models are more in demand than extended stay and upscale hotels. We take a look inside the rise of the boutique hotel.

Healthy supply

As consumers and travelers seek to engage more with the local communities they are visiting, the hospitality industry has had to shift gear to accommodate these new desires, and no sector of the hotel industry has done this better than the boutique hotels. Boutique hotels, which offer a unique experience and have a focus on culture, creativity and design, have become much sought after lodgings with discerning travelers who want to spend time in decadent surroundings in desirable destinations. And it seems that the boutique hotel is now the hospitality industry’s fastest growing model, with extended-stay properties following close behind. This is bad news for traditional upscale hotels, who face stiff competition from these luxurious and independent experiential hotels. A recent report from The Highland Group shows that the supply of boutique hotels has surpassed that of upscale hotels, and was up 7% in 2017 compared to a 1.8% increase across the board for all hotels in the US.

Strong growth year on year

The figures that represent the growth in boutique hotels have been increasing year by year since around 2012. This has been bolstered by the rise in lifestyle and experiential hotels, most of which fall under the offerings put forward by the boutique hotel model. The supply of lifestyle hotels grew by over 7% in 2012, and in 2017, growth for this sector was recorded at an impressive 11.5%. Boutique hotels often form part of soft-brand collections, and this part of the market too has seen respectable increases, with supply jumping on average 3.4% annually since 2012. Soft brands continue to dominate a large sector of the market, with big name brands continuing to add more collections to their portfolio.

As much as lifestyle and extended stay properties are growing in popularity, the traditional boutique hotel has remained steadfast in its popularity, cementing the fact that it is not just a flash in the pan trend, and will likely outlast other flash-in-the-pan models that seek to compete with it. The strength of the boutique hotel sector will no doubt continue to entice both hoteliers and guests, as big name brands struggle with redefining themselves to get customers in the door.

Let’s take a look at a few boutique hotel projects currently underway:

Cains Beverly VillageBoutique Hotel

Boutique Hotel Ybor City

Jumeirah Saraya Bandar Jissah Boutique Hotel

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