Definition Boutique Hotel

8/6/2019 Definition Boutique Hotel

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The Definition of Boutique Hotels in Recent YearsWritten By: Lucienne Anhar, Class of 2000 EHLValuation Analyst at HVS InternationalSince the beginning of the 21st century, the lodging industry has

becomeincreasingly over-supplied with big monopolies of hotel brands. Thesebrands,predominantly based in North America, succeed in selling consistencyacross thenation and, for some, around the world. These lodging facilitiespublicize themeaning of hotel through the truly traditional definition: a lodgingaccommodationfor travelers.Nevertheless, travelers nowadays expect more than simply comfort

and convenience.An increasing number of travelers prefer to be surprised positively, needless tosay. When planning trips, they seek properties that are noticeablydifferent in lookand feel from branded hotels. Although many travelers claim to seeklodging facilitiesthat coincide with the traditional hotel concept, boutique hotels arebecoming moreand more of a social manipulation: those who do not stay in boutiquehotels are

categorized as unfashionable and un-hip.Boutique hotels are believed to have been invented in the early 1980s. Two of thefirst boutique hotels in the world opened their doors to the public in1981: TheBlakes Hotel in South Kensington, London (designed by celebrity stylistAnouskaHempel) and the Bedford in Union Square, San Francisco (the first in aseries of 34boutique hotels currently operated under the flag of one of the mosteminent players

in the boutique hotel world today, the Kimpton Group). In 1984, IanSchrageropened his first boutique hotel in Murray Hill in New York City: theMorgans Hotel,designed by French stylist Andre Putnam.

The definition of a boutique hotel varies, especially among the hotelindustrysprimary players. However, the majority of boutique hotel operators,


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creators, andowners can all agree on the following primary features of boutiquehotels:?? Architecture and designStyle, distinction, warmth, and intimacy are key words in the architecture and design

of boutique hotels, which seem to attract a niche of customers looking for a specialand differentiated property able to fulfill their individual needs. Boutique hotels arenot boxed into standards; the definition and expression of a theme is a crucial path tosuccess.Many boutique hotels introduce different themes in each guestroom, making everysingle stay unique, even for their repeat guests. For example, the Library Hotel in NewYork City offers a different theme (from romance to music) in every guestroom. Manyhotel owners are revitalizing older hotels, repositioning them as boutique properties.While true modernism and newly born design generally become hip in no time, it isusually those properties that succeed in combining historic details with chic elegancethat outlast the fads.

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?? ServiceThe question that blurs the meaning of boutique hotels is, Does size matter? Most

boutique hotel celebrities insist that it does, and that boutique hotels are propertiesthat do not exceed 150 rooms. They believe that what distinguishes boutique hotelsfrom standardized hotels is the connection that hotel guests experience with membersof the hotel staff. Most of these hotels impose the acknowledgment of guest names byall hotel staff members, an experience that is clearly difficult to achieve in a largescalehotel.

Nevertheless, Ian Schrager, founder and president of Ian Schrager Hotels, whichcurrently comprises approximately 3,000 guestrooms in nine properties, is amongthose who do not believe in this commonly accepted facet of the typical boutiquehotel. With creative people as his target market, he defines boutique as an approachand attitude, with no regard to hotel size. Personalized service does not appear to beimportant at Schrager properties, especially in his biggies, such as the ParamountHotel (594 rooms) and the Henry Hudson Hotel (821) rooms. Instead, Schrager hotels

place the emphasis on entertaining their guests by creating a theatrical atmosphere thatattracts all senses: through architecture, design, colors, lighting, art, and music.?? Target marketBoutique hotels generally target customers who are in their early 20s to mid-50s, withmid- to upper-income averages.

Although no standard definition of boutique hotels has been agreedupon, and thesizes of these types of hotels vary considerably, most boutique hotelsdo share somecommon characteristics. As with any other hospitality product, thesuccess stories of boutique properties begin with fundamentals such as location, productquality,


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market demand, a clearly defined marketing approach, and effectivedistribution/reservations coverage. In light of these factors, boutiquehotel creatorsdetach their creations into two branches:1. Boutique hotels in city destinations

In city destinations, location still ranks number one on guests priority lists. Goodlocations for boutique hotels are not determined only by manner of convenience, butalso by the trendiness and chic-ness of their respective neighborhoods.Accordingly, most existing city boutique hotels are located in vivacious cities such as

New York, London, San Francisco, and Miami. Ian Schrager, for example, claims toonly open his hotels in cities with enough depth i.e., big fashion and media capitals.

Nevertheless, more and more companies are targeting less cosmopolitan cities that are believed to have strong potential for boutique hotels: cities with vibrant economiesand high-end residential areas, but bland, characterless hotel inventories.Both the style and the design of city boutique hotels are unlike the traditional resort

boutique hotels. Cooler notes, modernism, and the interpretation of the 21st Century

at times matched with historical components and art are considered modish, andare found in most successful city boutique hotels. Technology strongly relates to thesefactors, whether it is technology that enhances the ambience and promotes emotionalcontact between the guests and the hard attributes of the building (such as lighting andmusic), or technology that is provided for the convenience of hotel guests (such asinroomDVD players, flat-screen television sets, cordless phones, and computers with

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high-speed Internet access and the latest monitor genres).Entertainment in boutique hotels is an important dynamic in creating a lively, chic andtrendy mind-set. However, in the boutique hotel concept, entertainment is not limitedto events such as live music and performances; the idea of a boutique hotel isentertainment in its own nature: a hip restaurant, lounge, and bar; an exceptionaltheme; and visually spectacular decorations.2. Boutique hotels in resort destinations Boutique hotels in resort destinations areexotic, small, and intimate. These boutique hotels give their guests a chance to explorethe local feel without sacrificing luxury.Although location is just as important in resort destinations as it is in city destinations,the word trendy has a different designation in this matter; if location should becentral in the case of city boutique hotels, trendy resort boutique hotels are generallywell-hidden, tucked away in deserted corners of the islands or the mountains. The

more difficult it is to reach the destination by means of common transportation, themore fashionable the location is considered.Successful boutique resort hotels unite traditional architecture with the comfort andluxury of modernism, without losing the personality of the local community. Each

boutique hotel must develop its own recognizable flavor, with sumptuousness andexcellence as the only similarities among boutique resort hotels. In boutique resortdestinations, service is generally more important than it is in boutique citydestinations. Exotic amenities take the role of technology in city destinations; in fact,


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boutique resort hotels actually promote the non-existence of electronics andcommunication devices in guestrooms as a competitive advantage. Traditional spas,rose petal baths, private individual plunge pools, honeymoon packages, and art and

painting sessions are just a few examples of boutique amenities offered in resortdestinations.

Marketing Boutique HotelsMost guests stay in boutique hotels because it is fashionable to do so,not because of the facilities the hotels offer. In this regard, boutique hotels are beingmarketed in amanner that is similar to many other goods, where the experience andthe image aresold, rather than the product itself. Marketing an independent boutiquehotel can bedifficult, as there are generally financial restrictions and other resourcerestrictions.

The main issue in marketing a boutique hotel or resort involvessending a messageto the target market. Story development is more important than ever,which relatesback to the special nature of the experience or location, or the historybehind thecreation of the hotel. The unique and easily related story must then bedeliveredthrough effective and affordable channels such as direct mail or directsales, alliedgroup marketing, affinity group travel planners, and public relations

through press.Boutique hotels bring certain benefits in terms of operations andprofitability. Besidesstrong customer demand, the economics are favorable for operators.For example,boutique owners do not have to pay a franchise fee to become part of a larger chain.

The hotel can survive and succeed without such costly amenities asrestaurants andballrooms/meeting spaces; however, these amenities, when styled in aboutique

manner, can bring significant additional profitability to the hotelsrooms revenue.

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Once established, boutique hotels also tend to have a higherpercentage of repeatbusiness compared to the industry in general, which may reflect a


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Definition Boutique Hotel