Boutique Lifestyle Hotels in USA

Boutique hotels and lifestyle hotels – terms coined in the late 1990s – are typically small upscale hotels that provide a hip environment and personal connection with members of the hotel staff.

According to the Boutique & Lifestyle Lodging Association (BLLA; www.blla.org), characteristics of a boutique hotel include offerings of unique services, high-quality inroom features, and social living spaces.

Lifestyle hotels are innovative and modern, according to the BLLA. Lifestyle properties are likely to have unusual design and architectural features, contemporary aesthetics, high levels of technology, and a focus on wellness and enrichment.

“Lifestyle hotels have a lot of boutique elements, but are stronger in certain aspects, such as technology. While boutique hotels are expected to focus more on anticipating travelers’ needs and offer more amenities, both segments offer a high level of service.”

Boutique Lifestyle Hotels in USA Photo Gallery




Frances Kiradjian, President Boutique & Lifestyle Lodging Association

According to STR, there are 796 boutique hotels with 96,711 rooms in the U.S. Independent hotels account for roughly one-half of boutique rooms. The top three boutique markets – New York, Miami, and San Francisco – account for nearly one-third of the segment’s supply. Room revenue for the segment is $5.7 billion.

The 2016 performance metrics for the boutique segment are as follows (change from previous year in parenthesis):

• Occupancy: 74.5% (2.9%)

• Average daily rate: $217.02 (4.3%)

• RevPAR: $161.64 (7.3%)

• Room-nights sold: 26 million (5.5%)

The boutique hotel market first gained attention in the 1990s with the opening of Delano in Miami Beach and Mondrian in Los Angeles. Both were designed by hotelier Ian Schrager and are now part of Morgans Hotel Group. The concept was further popularized with the launch of W Hotels by Starwood Hotels & Resorts. Kimpton Hotel & Restaurant Group has developed its Hotel Palomar and Hotel Monaco concepts into boutique chains. Hyatt Place, launched in 2006, expanded rapidly by converting former AmeriSuites properties to the brand and has become the marketshare leader in the segment. Other boutique and lifestyle brands include aloft, Cambria Suites, Element by Westin, Hotel Indigo, Hotel Sierra, and Nylo Hotels.

“The future for boutique properties certainly appears bright. While the segment is relatively small, growth has been solid and targeted development in vibrant urban and resort markets offers the potential for continued gains in the coming years. Fresh product in vibrant locations, personal service, and great price/value is a winning combination.”

Bobby Bowers, Senior V.P.

STR

CBRE Hotels, 3340 Peachtree Road NE, Suite 580, Atlanta, GA 30326. (404) 8421150. (www.cbrehotels.com)

PricewaterhouseCoopers (PwC), Hospitality & Leisure Group, 2001 Market Street, Suite 1700, Philadelphia, PA 19103. (305) 375-6210. (www.pwc.com)

STR, 735 East Main Street, Hendersonville, TN 37075. (615) 824-8664. (www.strglobal.com)

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