Boutique Hotel Sector Outlook

Boutique hotels: Luxury Stay in a Pocket Friendly Budget

  • Ongoing
  • February 2020
  • REP-GB-3125
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Boutique Hotel Sector Outlook
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This Boutique Hotel Sector Outlook market study offers a comprehensive analysis of the business models, key strategies, and respective market shares of some of the most prominent players in this landscape. Along with an in-depth commentary on the key influencing factors, market statistics in terms of revenues, segment-wise data, region-wise data, and country-wise data are offered in the full study. This study is one of the most comprehensive documentation that captures all the facets of the evolving Boutique Hotel Sector Outlook market.


Boutique hotels are small but stylish hotels, mostly located in a plush and fashionable urban location. The term boutique hotel was first used in the U.S and in U.K to describe small but trendy and luxurious hotels with rooms between 10 and 100. Boutique hotels first appeared in 1980s in cities like San Francisco, London and New York. These hotels are generally based on a theme. Their popularity has prompted many multi-national hotel companies to come up with boutique hotels and capture the market. Miami, Los Angeles, London and New York City are the current locations where the presence of boutique hotels are in large numbers. Boutique hotels provide exotic amenities like spas, Yoga, painting classes etc.

Boutique Hotel: Benefits

Market Growth Analysis

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

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According to a recent study, boutique hotels are around 20 percent cheaper than other hotels or chain establishments. Moreover, boutique hotels offer more value for money. Even if boutique hotels are relatively cheap they offer all the luxurious amenities which is the greatest advantage of boutique hotels. The rooms in boutique hotels are small in size. Moreover, the number of rooms in boutique hotels are less. Both of these factors are beneficial for the tourists, as small sized rooms give them a personal feel, while due to less number of rooms, hotel staff is able to do justice to each and every tourist by attending to them personally. Although small in size, boutique hotels have charming look. These hotels are in historical buildings still carry modern and trendy look with romantic or whimsical themes. Many boutique hotels set a different theme to each room. In short, boutique hotels can give a feel of five star stay to customers. Boutique hotels focus on making the customer’s stay memorable. Many boutique hotels provide complimentary breakfast, designer bath products and a free bottle of wine upon arrival in their hotels. Boutique hotels are generally independently owned and therefore they almost meet all the preferences of their customers. Many boutique hotels also allow dogs, provide hostels for childcare, saunas and spas and lot of other fancy amenities.  

Boutique Hotel: Drivers and Restraints

Boutique hotels are very comfortable. The management of such hotels takes utmost care to provide all necessary services and amenities which are accessible only to the guests who check into five star hotels. For example free Wi-Fi, cable TV, comfortable and spacious rooms, pubs and private swimming pool etc. This is the major driving factor for the growth of boutique hotels. Another factor which is creating robust development in the boutique hotel sector is that these hotels also prefer to be low budget hotels. So far, boutique hotels have been operating at the upper end of the price scale; however, today many multi-national hotels are also offering luxurious amenities in a pocket friendly budget. Naturally, this is attracting a large number of tourists, thereby automatically increasing the growth of the boutique hotel sector. Tourists now-a-day do not get inspired by the brand of the hotel but get mesmerised by its location. They are passionate about the service and food offered by these hotels. Boutique hotels fit into this criteria of tourists’ choice, and this is creating a lucrative market for boutique hotels globally. However, boutique hotels do not appeal to everyone. Not many people are interested in opting for budget friendly boutique hotels and this is likely to hinder the growth of the boutique hotels sector.

Boutique Hotel: Industry Outlook

This sector will have robust development in future, as more and more people are getting aware about the concept. As boutique hotels cater to the budgets of all classes of the population, their popularity will increase in future, which will create a lucrative market for this sector.

Boutique Hotel: Leading Operators

Borgo Santo Pietro in Italy, Maison 140, Beverly Hills in USA, Lydmar Hotel in Sweden, Sanctum Soho in the U.K, and The Toren in Netherlands are some of the well-known boutique hotels across the world. 

This comprehensive report equips readers with lucid information and analysis on the sector. Future Market Insights’ experienced travel and tourism analysts bring to you accurate and unbiased information to help you make crucial decisions with confidence.

The report offers a 360° view – bringing to the fore key drivers, restraints, opportunities, and challenges prevailing in the sector. To offer readers actionable insights, detailed information on historical trends, current scenario, and future projections is provided in the report. 

The report specifically focusses on the leading companies operating in this sector, highlighting their key developmental strategies. A holistic analysis of the leading players is highlighted to help decision makers understand the overall competitive landscape.

NOTE - All statements of fact, opinion, or analysis expressed in reports are those of the respective analysts. They do not necessarily reflect formal positions or views of Future Market Insights.

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What Can Readers Expect from this Report?

  • An overview of the sector, including the key factors that have shaped patterns and demand
  • Not just data, but insights that you can incorporate in your strategic decision making
  • Nuanced underlying factors that influence consumer behaviour
  • Data points to understand the past, analyse the present, and project the future
  • Trends that will impact the sector in the short- and long-term
  • Deeper understanding of the target audience, their motivations, aspirations, and expectations from service providers
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Harish Tiwari

Harish Tiwari

Global Head - Business Development

Pranay Mhaisekar

Pranay Mhaisekar

Business Development

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