According to the Highland Group's Boutique Hotel Report for 2025, boutique hotels achieved higher average daily rate than most comparable-class U.S. hotels in 2024.
All boutique segments in the report have slowed in rate growth over the past two years, but have also achieved their highest rates during that time. Most segments finished 2024 with higher average rates than same-class U.S. hotels; some, like luxury indie boutiques, by a large margin. The vast majority of boutique hotel segments have also experienced similar annual demand growth compared to supply growth over the past seven years, indicating healthy absorption and stability.
Based on data in The Boutique Hotel Report 2025, solid performance of this hotel type continues to attract development within the indie boutique, lifestyle and soft-brand collections categories. Further illustrating the appeal of this segment is the recent affiliation of several popular indie boutique rooms with national franchises. These lodging concepts create a "valuable and unique" accommodation type that will broaden the portfolio of their new parent companies.
“With an intent to heighten the travel experience, boutique hotels intrigue through design, storyline, food & beverage and unique amenities," Kim Bardoul, partner at The Highland Group, said in a statement. "The segment consistently performs well with solid occupancies and, in many cases, a premium in rate over traditional hotel types. Overall, boutique hotels are positioned very well for future growth.”