According to a report from consulting agency The Highland Group, BOUTIQUE HOTELS had some problems in 2020 but recovered faster than other hotel categories. The segment was able to benefit from its growing popularity with travelers to reopen and end discounts faster than similar hotels in other segments.
In March and April 2020, when travel restrictions were put in place due to the COVID-19 pandemic, the boutique hotel sector was closed just like others Boutique Hotel Report 2021. Later in the year, however, RevPAR improved for the sector as boutiques slowed discounts on average rates.
The Highland Group Report from March 2020 noted that despite the growing supply, the segment had high demand, resulting in higher ADR and RevPAR.
“This revenue management strategy, most commonly found in the upper upper / luxury tier of independent boutique and soft-brand collections, puts these boutique hotels in a stronger position to match the rate in the recovery years,” said Kim Bardoul, partner at The Highland Group.
The report defines boutique hotels as independent lifestyle hotels and soft brand collections. These categories will expand as companies introduce new brands that fit this category.
“Boutique hotels are very popular with all types and classes. As one of the fastest growing segments in recent years, it has drawn interest from consumers, developers, investors and franchises, ”the report’s executive summary reads. “Some classes and types of boutiques performed better than comparable hotels in the same class on certain metrics. The 2020 RevPAR loss was lower for independent boutique and soft branded upscale / luxury collections as discounts slowed over the last half of the year. Supply losses were significantly higher for both class groups of independent boutique hotels, most of which are privately owned and located in densely populated urban areas badly hit by the COVID-19 pandemic. “
All hotel categories in the segment recorded only slight decreases in RevPAR in 2020 compared to 2019. Upper upper-class and luxury independent boutique and soft-branded collections in the same class, as well as upper mid-sized and upper-range soft-branded collections, recorded a RevPAR of 10 to 18 percent index gains in 2020 compared to the average from 2017 to 2019.
