The Moonhanger Group
“When was the last time I took a break?” The question lingers in your head for a while until you realize it’s been far too long since you’ve taken time for yourself. “It’s time to put that PTO to use for vacation and besides, I’m past due for one anyway,” you think.
As you peruse the Internet upon your recent revelation, you realize there are so many options for where to go and where to stay. As you’re sifting through the various search results, see a quaint little spot that catches your eye.
It’s in the heart of a bustling city and it has only seven rooms that overlook the skyline and you’re instantly sold. When you click the booking site, a message comes up with a term you’ve never heard of before. “Huh, what even is a boutique hotel, anyway?”
Its Meteoric Phenomenon
General Overview
The dawn of the boutique hotel began as an exciting way to rethink travel in the 1980s, thus taking the United States by storm. According to Oxford Languages, a boutique hotel is “a small stylish hotel, typically one situated in a fashionable urban location.” At the same time, many hospitality experts believe that the exact terminology for the phrase has and will continue to evolve. Although some boutique hotels differ in style and offerings, some general characteristics of these establishments include their small size, intentionally intimate guest experience, striking architectural layout and unique personality and theme that draws from the city around them.
One large qualifier that differentiates boutique hotels from major hotel chains is its emphasis on separation from a large corporate machine. Many boutique hotels are independently owned and operated, while others are attached to a company of small hotels like Graduate Hotels (collegiate-themed lodging) and 21c (art gallery-based lodging). Others defy general boutique hotel standards by being attached to a larger brand. One example of this is the Tribute Portfolio collection, a series of indie boutique hotels owned by Marriott Bonvoy, a subset of Marriott International. Stats & Facts
Boutique hotels have proven immensely profitable and valuable within the last few years, even before the COVID-19 pandemic. According to IBIS World, its market share was around $21 billion in 2019 and although there was a significant drop in market size in 2020, it has exceeded its recovery rates at $23 billion in 2022. The pandemic had a uniquely devastating impact on the hospitality industry overall with many of their core consumers not traveling and staying at home to prevent the contraction and spreading of the disease. Despite the hospitality industry’s fierce efforts to get back to stabilized numbers, the boutique hotel’s market size in the United States has increased faster than the economy overall in the past five years.
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