PUBLISHER: The Business Research Company | PRODUCT CODE: 1556233
PUBLISHER: The Business Research Company | PRODUCT CODE: 1556233
A boutique hotel is a small, stylish hotel often located in unique settings such as historical buildings or trendy urban neighborhoods. These hotels are known for their intimate atmosphere, personalized service, and distinctive decor and amenities tailored to specific themes or clientele. Boutique hotels aim to offer a more personalized and upscale experience compared to larger chain hotels, with a focus on luxury, design, and individuality.
The main types of boutique hotels include business hotels, suite hotels, airport hotels, resort hotels, and others. Business hotels cater primarily to corporate travelers, providing convenient locations, business-oriented amenities, and services such as conference facilities and high-speed internet. Boutique hotels come in various styles and themes, including historic, art-themed, eco-friendly or green, and boutique beach resorts. They target different audiences, such as luxury, budget, adults-only, and family-friendly boutique hotels. Booking channels include phone, online, and in-person reservations, while locations range from urban to rural or countryside settings.
The boutique hotel market research report is one of a series of new reports from The Business Research Company that provides boutique hotel market statistics, including boutique hotel industry global market size, regional shares, competitors with an boutique hotel market share, detailed boutique hotel market segments, market trends, and opportunities, and any further data you may need to thrive in the boutique hotel industry. This boutique hotel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The boutique hotel market size has grown strongly in recent years. It will grow from $87.95 billion in 2023 to $93.79 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth during the historic period can be attributed to several factors, increasing demand for unique and personalized travel experiences, a rising preference for authentic and locally-inspired accommodations, the growing popularity of boutique hotels among millennials and Gen Z travelers, the expansion of digital platforms improving booking convenience, and a rise in disposable incomes and spending on luxury travel experiences.
The boutique hotel market size is expected to see strong growth in the next few years. It will grow to $121.90 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. The anticipated growth during the forecast period can be attributed to several factors, the adoption of sustainable practices and eco-friendly initiatives, the integration of advanced technology to enhance personalized guest experiences, a shift towards experiential hospitality that prioritizes unique experiences over traditional amenities, increased investment in refurbishing and repositioning existing properties, and the expansion of boutique hotel chains into emerging markets. Key trends expected during this period include a focus on wellness and holistic guest experiences, the incorporation of art and cultural elements into hotel design and services, growth in leisure travel, blending business and leisure stays, adoption of contactless technologies and AI-driven customer service, and the development of hybrid spaces that combine accommodation with co-working or social hubs.
The rising popularity of experiential travel is expected to drive the growth of the boutique hotel market in the future. Experiential travel focuses on immersive and interactive experiences that allow travelers to deeply engage with a destination's culture, activities, and local life through unique and personalized activities. This trend arises from a desire for authentic and meaningful experiences that go beyond traditional sightseeing, fostering deeper connections with destinations and their cultures. Boutique hotels cater to this trend by offering unique, personalized accommodations that reflect local culture and character, providing a more immersive and distinctive stay. For example, in November 2023, the World Tourism Organization (UNWTO), based in Spain, reported a 22% increase in international tourist arrivals in the third quarter of 2023 compared to the same period in 2022. Foreign tourist earnings were projected to exceed $1.4 trillion by the end of 2023. This growth highlights the rising interest in experiential travel, which is contributing to the expansion of the boutique hotel market.
Companies in the boutique hotel market are focusing on implementing advanced technologies, such as app-enabled services, to gain a competitive edge. App-enabled services involve digital solutions that use mobile applications to enhance and streamline various aspects of hotel services, offering users convenient and personalized experiences. For instance, in July 2023, Sonder Holdings Inc., a US-based hospitality company known for its technology-driven approach, launched its first hotel collection named Powered by Sonder. This collection features boutique hotels that incorporate Sonder's technology and expertise, including properties such as Atala in Paris, Chambers in New York City, and Yelo Jean Medecin in Nice. Each hotel boasts a unique style and local influence, and guests can manage their stay from booking to check-out using the Sonder app. This app facilitates modern conveniences such as mobile check-in, direct communication with guest services, and easy access to amenities.
In July 2024, Room Mate Hotels, a Spain-based lifestyle hotel brand, acquired Staying Valencia for an undisclosed sum. This acquisition allows Room Mate Hotels to expand its presence in the boutique hotel market, particularly in Valencia, and enhances its portfolio across Spain to a total of 32 properties, reinforcing its position as a leading boutique hotel brand. Staying Valencia is a boutique hotel and aparthotel chain based in Spain.
Major companies operating in the boutique hotel market are Marriott International Inc., Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Four Seasons Hotels and Resorts, InterContinental Hotels Group PLC, Dubai Holding LLC, Rosewood Hotels & Resorts, Jumeirah International LLC, The Travel Corporation, Shangri-La International Hotel Management Ltd., The Peninsula Hotels, Mandarin Oriental International Limited, The Ace Hotel, Six Senses Hotels Resorts Spas, Firmdale Hotels, ITC Hotels Limited, Yotel Ltd., The Standard Hotels, The Hoxton, Ovolo Hotels, COMO Hotels and Resorts, Auberge Resorts Collection, 1 Hotels, The Pod Hotel, Design Hotels, Bunkhouse Group, Triple Creek Ranch, Farmhouse Inn, Kerzner International Limited
Asia-Pacific was the largest region in the boutique hotel market in 2023. The regions covered in the boutique hotel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the boutique hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The boutique hotel market includes revenues earned by entities by providing services such as boutique dining experiences, spa services, and curated local tours or activities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Boutique Hotel Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on boutique hotel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for boutique hotel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The boutique hotel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.