Boutique’s bounce back

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Boutique's bounce back

[Credit: The Boutique Hotel Report 2022]

News that US boutique hotels are recovering strongly against traditional hotel segments will be largely welcomed by our readers. In The Boutique Hotel Report 2022, which defines boutique hotels as independent boutique, lifestyle or soft brand collections, the recovery is charted across different classifications within these product types and mapped against the appropriate categories of US hotels.

In a nutshell, lifestyle hotels and soft brand collections have been two of the industry’s fastest growing segments. In fact, new openings continued to occur during 2020 when the US overall experienced a temporary decline in national hotel room supply. In the lifestyle space, Aloft leads in terms of room count (21,659) followed by AC Hotels (15,292) and Kimpton (13,154). Regarding soft brands, Autograph takes the top spot (26,091) followed by Trademark (18,960) and Curio (16,749).

And whilst the boutique hotel product achieved occupancies between 46 and 59 per cent in 2021 compared to US hotels at 58 per cent, average rate increased 25 per cent compared to 21 per cent for US hotels.

Healthy occupancies and rates position boutique hotels as a popular choice for owners. Kim Bardoul, partner at The Highland Group, expects overall segment performance to reach pre-pandemic levels soon, potentially spurring further investment into the space.

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