Boutique hotels are defined in the report as independent boutique, lifestyle or soft brand collections, which have become a popular option to traditional hotels with the offer of unique accommodations. All three of those product types continue to grow in new openings. Newly introduced brands and conversion opportunities indicate future expansion for the boutique hotel segment, according to the report.
The boutique hotel concept generated more RevPAR than most comparable-class US hotels in 2023, according to the report. Results vary by hotel, but the boutique product that focuses on an experiential stay, exceptional design and unique amenities tends to attract a rate premium.
Although this type of lodging has a relatively high concentration of rooms in urban centers and gateway markets, opportunity for its development is growing in tertiary markets, said the report. One developing trend is the number of small suburban town centers exploring the addition of a boutique hotel to generate vibrancy and curiosity in their immediate area. A well-done boutique hotel, while serving a town with unique accommodations, said the report, “offers a sense of place if adeptly immersed into the vibe and history of the local community, providing an appealing location for guests and locals to gather.”
Image: The Bowery Hotel, NYC
