Boutique Hotel

A boutique hotel is a hotel typically ranging between 10 to 100 rooms with a 5-star hospitality service and ambience in unique settings with glamorous accommodation and a Unique Point of Selling.

Experiential luxury travel is becoming a trend and hotels are definitely part of this journey. Hotel markets are seeing high demand for high experiential luxury travel, demonstrated by Revenue Per Available Room growth in the US luxury resort market, as well as in Paris, Rome, Florence, Bangkok, Maldives, Singapore and Tokyo. In a Research done in 2017, shows that boutique hotels had higher overall average daily rates and faster growth compared to branded hotels. Guests will get more value for money with a luxurious stay at a minimal cost.

The demand for boutique hotels has been apparently rising over the past few years. Especially for travellers who are fond of luxury, they account for one-third of the world’s hotel guests and it is likely to reach over 50% by 2024. They are often looking for a one-of-a-kind and lavish stay. This makes them the golden market segment for hoteliers to deliver more exceptional experiences. Some examples of case studies for the hotel brands that are responding by launching new and unique experiences and services are as follows:

• Intercontinental Hotel Group’s acquired a 51% stake in Regent Hotels & Resorts in 2018. In addition to Regent Hotels and Resorts acquisition, IHG also acquired Six Senses Hotel & Resorts for US$ 300 million in Q1 2019 to further strengthen the company’s luxury segment.
• Accor and sbe Group completed its acquisition of a 50% stake in sbe in 2018. They launched the newest luxury lifestyle brand called The House of Originals providing a network of extraordinary luxury properties.
• LVMH’s proposed $3.2bn acquisition of the Hospitality Group, Belmond Ltd. Its portfolio of high-end hotels, train services and river cruises stretches across 24 countries and includes the Hotel Cipriani in Venice and the Orient Express train service.

What makes boutique hotels so attractive to travellers? 

The three principal factors are as follows:     

• Location – Usually located in the heart of the local community making them a hotspot which allows travellers to experience authentic and cultural ability. Good boutique hotels will know how to take advantage of the area including local authentic food. It is not only creating exclusive accommodation, but it also creates a destination within a destination.
• Architecture, Furniture and Intricate details– Full of character, personality and distinctive architectural features. Some boutique hotels will renovate into modern buildings with funky artwork, music and other forms of high-energy vibes. In order to stay competitive, it all comes down to the quality and detail of the hotel.
• Customize Services – Boutique hotels offer highly personalized service i.e. butler service and amenities. For example, providing luxury amenities such as high-quality authentic cuisine, personalized name on the bathrobe, and custom toiletries that create a personalised experience.

All in all, bringing experiences through service quality, fineness and emotional engagement are what luxury boutique hospitality should be about, to satisfy all individual guests based on their expectations, culture and background. Further, boutique hotels are more cost-effective for millennials than enormous hotels. They pay less and observe more value for money with the luxurious experience. With these reasons stated above (Location, Intricate details and Customized service), boutique hotels will endure to grow in popularity and outgrow big hotel chains.