Boutique hotels have collectively increased in all performance indicators through June 2024 compared to the previous period in 2023, according to the Highland Group report. Each boutique segment—lifestyle, soft brand collection and independent—contributed to a collective increase in revenues of 5 percent.
Demand increases are seen across classes, from upper midscale to luxury, and further establishes the appeal of a unique accommodation for all travelers. The lifestyle segment achieved the largest increase in supply, occupancy, demand and revenue. The soft brand upper midscale class reported some of the strongest average rate gains. Independent boutiques achieved the largest increase in revPar.
“Boutique hotels are doing very well," Kim Bardoul, partner at The Highland Group, said in a statement. "Continued awareness of this product type as an option is shown through strong increases in performance. Additionally, what was once largely an upper upscale and luxury class accommodation is now well represented throughout other class types. Not only does the availability of boutique rooms at differing price tiers appeal to travelers, but also to developers.”
Boutique Hotels: Mid-Year 2024 is a supplement to the Highland Group's Boutique Hotel Report 2024, providing year-to-date performance for the segment.