US: The Boutique Hotel Report 2022 from The Highland Group reveals soft brand collection and urban independent hotels are recovering strongly in occupancy and rate.
Regarding upper midscale and upscale soft brand hotels, occupancy reached 53 per cent in 2021 – eight points below 2019 pre-pandemic levels. This sample, comprised largely of upscale hotels, compares to all US upscale class performance at 60 per cent occupancy in 2021, 13 points below 2019.
Average rate for upper midscale and upscale soft brand collections peaked at $139 in 2021 and above all US hotel upper midscale and upscale rates of $111 and $129 respectively.
The report goes on to chart the supply and market performance of upper upscale soft brand hotels and luxury soft brand hotels.
Independent boutique hotels grew by 3.6 per cent when hotel supply across the US declined in 2020. The Highland Group notes that independent boutique hotels are developing in secondary markets however are disproportionately located in urban centres and gateway markets.
As a result of this, occupancy for urban independents reached 57 per cent in 2021 (15 points below 2019 levels), which compares to all US hotels in urban locations reporting 52 per cent occupancy in 2021 (19 points below 2019 levels).
For upper midscale and upscale independent boutique hotels, average rate reached $168 last year – well above the overall US upper midscale rates of $111 and upscale rates of $129.
The report covers additional hotel segments including upper upscale independent hotels, luxury independent hotels, boutique hotels with rooftop bars, as well as distribution. Data covers operating performance of these class groupings such as occupancy, ADR, supply, and demand from 2014 through 2021, with analysis of recovery through 2021 indexed with appropriate US hotel categories.
Kim Bardoul, partner at The Highland Group, said: “Although complete recovery has been hindered for some by location and supply growth, overall segment performance is expected to reach pre-pandemic levels soon; once again positioning the boutique hotel product as one of the most popular lodging types.”
Buy and download a copy of The Boutique Hotel Report 2022 here.