Boutique Hotels Market Potential has High Ceiling

There is an overwhelming interest in boutique hotels these days. Hotel experts have been looking closely on the development of this chic boutique hotels, which are known to be hotels with 100 or less rooms. With the interest on investors for it, it has come to our attention that the next few years we will see more of this boutique hotels, may it overseas or in state.

It has reported that in December a known originator of the said concept, Ian Schrager announced that 2 new brands as sample of the lifestyle hotels/boutique hotels which are in the works. Virgin Hotels will follow up with their own as they plan to create a 4 star boutique of their own, Richard Branson’s Virgin Group announced. I can go on and on with it as more recently, the Wyndham Hotel
Group signed an agreement with Chatwal Hotels and Resorts to franchise and manages Chatwal’s Night and Dream boutique brands, and Sonesta International Hotels. Also, there is Modo, from the former chief executive of Nylo Hotels; and new boutique spinoffs by Softel and Swire Hotels. Its popularity is really taking shape.

“Almost a third of all hotels opening in Manhattan this year would be boutique hotels and as much as 10 percent in other major urban markets. He estimated that they could account for 6 percent of all hotels in the United States, and as much as 10 percent in the largest urban markets, in 10 to 15 years.” Robert Tisch Center for Hospitality, Tourism and Sports Management at NYU said.

Henry H. Harteveldt, travel analyst for Forrester Research said that one reason for growth is the reaction of travellers themselves. He said that “Everybody pays attention to design,” and added. “People like things a little bit different, offbeat. And they make someone who may have a rather mundane life feel hip.”

One thing that is really good for boutique hotel owners is they do not have to comply with the brand standards. Thus, developers can more easily convert an existing structure like an office building into a hotel. Top destinations like New York, Miami, Los Angeles and Chicago are really seeing potential on this so called boutique hotels as more and more developers are looking to get their hands on them.